Bay Street Set To Open On Firm Note

(RTTNews) - The Canadian market is likely to open on a positive note Wednesday morning with materials stocks set to attract buying thanks to strong precious metals prices. A notable drop in crude oil prices could ease concerns about inflation.

The focus is on the Federal Reserve's monetary policy announcement, due at 2 PM ET. The Fed is widely expected to raise interest rate by 25 basis points. The accompanying statement is eyed for clues about the central bank's future interest rate path.

Dollarama Inc. reporting second-quarter sales of C$2,026.6 million compared to C$1,723.8 million in the prior year. Net earnings stood at C$349.3 million, or C$1.29 per share, compared to C$321.5 million, or C$1.16 per share, in the previous year.

The company now expects comparable store sales of 4% to 4.5% for the Canadian segment in the fiscal, instead of previously announced 3% to 4%.

In economic news, data from Canada Mortgage and Housing Corporation showed housing starts in Canada were largely flat month-over-month at a seasonally adjusted annual rate of 229,000 units in August 2026, the lowest since March 2025 and below market forecasts of 240,000 units.

Building permits in Canada decreased to -17.3% in July from 18.3% in June, data from Statistics Canada showed.

Brookfield Asset Management Ltd announced an agreement to acquire 100% of Reliance Worldwide Corporation, a global manufacturer of plumbing and heating solutions. The Reliance Board has unanimously recommended the all-cash proposal of US$3.38 per share to shareholders, who will vote on the agreement. The offer values Reliance at an enterprise value of approximately US$2.8 billion.

Canadian stocks moved lower on Tuesday as the focus of investors shifts to the interest rate announcement by the U.S. Federal Reserve tomorrow amid increasing bets on a rate hike after concerns of prolonged crude oil supply disruptions in the Middle East elevated inflationary pressures.

After opening below yesterday's close, today the benchmark S&P/TSX Composite Index traded negative throughout the session before settling at 35,582.07, down by 120.46 points (or 0.34%).

Asian stocks ended flat to slightly higher in cautious trading on Wednesday as oil prices pulled back from recent highs and investors braced for a closely watched Federal Reserve rate decision later in the day.

The major European markets are up in positive territory in cautious trade ahead of the Federal Reserve's monetary policy announcement later in the day. Weak crude oil prices and lower bond yields aid sentiment.

In commodities trading, West Texas Intermediate Crude oil futures are down $1.98 or 1.84% at $103.87 a barrel.

Gold futures are up $51.70 or 1.19% at $4,384.50 an ounce, while Silver futures are up $1.274 or 1.98% at $65.130 an ounce.