Bay Street Seen Opening Higher

(RTTNews) - Canadian shares are likely to open higher Thursday morning, tracking positive global cues and firm commodity prices. Optimism about monetary easing by several central banks in the foreseeable futures is likely to aid sentiment.

Transat A.T. Inc (TRZ.TO) reported a net loss of $54.4 million, or $1.40 per share for the second-quarter, compared to net loss of $29.2 million, or $0.76 per share in the year-ago quarter.

On the economic front, Canada's trade data for the month of April is due at 8:30 AM ET.

At 10 AM ET, the Ivey Business School will release the Ivey Purchasing Managers Index score for the monthof May. The Ivey PMI surged to 63 in April from 57.5 in March, hitting its highest level in two years.

Canadian stocks turned in a strong performance during trading on Wednesday, as traders reacted to the Bank of Canada's widely expected decision to lowest interest rates.

The benchmark S&P/TSX Composite Index gave back ground after an early rally but moved back to the upside to end the day firmly positive. The index climbed 166.84 points or 0.8 percent to 22,145.02.

The rally on Bay Street came after the Bank of Canada announced it has decided to lower interest rates by 25 basis points, citing continued evidence that underlying inflation is easing.

The Bank of Canada reduced its target for the overnight rate to 4.75 percent, with the bank rate at 5.0 percent and the deposit rate at 4.75 percent.

Asian stocks ended broadly higher on Thursday amid rising optimism about interest rate cuts by several central banks.

European stocks are quite firm, tracking gains in Asian markets, as investors remain optimistic ahead of the European Central Bank's decision on key interest rates.

The ECB, at the governing council meeting in Frankfurt, is widely expected to cut the main refinancing rate, the deposit facility rate and the lending rate by 25 basis points each.

The sentiments also reflect the rate cut by Bank of Canada, along with the lower-than-expected private payrolls data from the U.S.

In commodities, West Texas Intermediate Crude oil are up $0.71 or 0.96% at $74.79 a barrel.

Gold futures are up $3.60 or 0.15% at $2,379.10 an ounce, while Silver futures are gaining $0.362 or 1.18% at $30.435 an ounce.