Bay Street Seen Opening On Mixed Note

(RTTNews) - It's likely to be a mixed start for Canadian shares on Wednesday with investors reacting to the crucial U.S. consumer price inflation data, and the developments on the trade front where U.S. and Chinese official reached a framework to implement the Geneva consensus following two days of discussions in London.

In Canadian economic news, data from Statistics Canada showed building permits in Canada plunged 6.6% in April, after falling 5.3% in March.

Data from the Labor Department showed the consumer price index inched up by 0.1% in May after rising by 0.2% in April. Economists had expected another 0.2% increase.

Meanwhile, the report said the annual rate of consumer price growth accelerated to 2.4% in May from 2.3% in April. The annual rate of consumer price growth was expected to speed up to 2.5%.

Excluding food and energy prices, core consumer prices still crept up by 0.1% in May after edging up by 0.2% in April. Economists had expected core consumer prices to rise by another 0.2%.

The annual rate of core consumer price growth in May was unchanged from the previous month at 2.8%, while economists had expected the annual rate of core consumer price growth to accelerate to 2.9%.

The Canadian market closed higher on Tuesday as hopes for resolution of the nearly six-month-old tariff war set off by US brightened. Shares from healthcare, consumer and energy sectors turned in a fine performance.

After opening flat, the S&P/TSX Composite moved up to 26,476.73, but pared some gains subsequently and eventually settled at 26,426.31, up 50.51 or 0.19% from previous close.

Asian stocks climbed higher on Wednesday after top U.S. and Chinese officials said they have reached a framework to implement the Geneva consensus following two days of discussions in London.

Regional gains were capped, however, as investors awaited the details of the outcome of trade talks and looked ahead to the release of U.S. consumer inflation data later in the day for direction.

European stocks are turning in a mixed performance in cautious trade, digesting news about U.S. and China agreeing on a framework to implement the Geneva consensus.

In commodities trading, West Texas Intermediate Crude oil futures are up $0.97 or 1.49% at $65.95 a barrel.

Gold futures are gaining $6.60 or 0.2% at $3,350.00 an ounce, while Silver futures are down $0.302 or 0.82% at $36.340 an ounce.