Bay Street Set To Open On Positive Note

(RTTNews) - Canadian shares are set to open on a positive note on Tuesday, tracking gains in European markets and firm commodity prices.

The focus will be on the Federal Reserve's policy meeting, which starts today, and its interest rate decision, due out on Wednesday.

The Fed is expected to raise rates by 75 basis points. The central bank's accompanying statement is eyed for clues about the size of future rate hikes.

In Canadian earnings news, Thomson Reuters Corporation (TRI.TO) reported adjusted EPS of $0.57 in the third quarter of the current financial year, compared to adjusted EPS of $0.46 in the year-ago quarter.

Colliers International Group (CIGI.TO) reported adjusted EBITDA of $145.1 million for the quarter ended September 30, 2022, compared with adjusted EBITDA of $123.6 million a year ago.

On the economic front, a reading on Canada's manufacturing activity in the month of October is due at 9:30 AM ET. The S&P Global Canada Manufacturing PMI came in at 49.8 in September of 2022, up from 48.7 a month earlier, data from Markit Economics showed.

After swinging between gains and losses, the Canadian market ended on a weak note on Monday, as the mood was quite cautious with investors looking ahead to the Federal Reserve's monetary policy announcement, due later in the week.

The Fed, which is set to meet on Tuesday and Wednesday, is widely expected to raise interest rate by another 75 basis points to rein in inflation. This will be the central bank's fourth straight 75-basis point hike if it happens.

The Fed's accompanying statement and the post meet speech by Fed Chair Jerome Powell will also be in focus.

The benchmark S&P/TSX Composite Index ended with a loss of 45.05 points or 0.23% at 19,426.14. The index touched a high of 19,510.88 and a low of 19,402.06 in the session.

Asian stocks closed higher on Tuesday, as the dollar eased on improved risk sentiment and bond yields dipped with investors bracing for a hefty rate hike from the Federal Reserve.

European stocks are up sharply with investors digesting to the latest batch of earnings updates and focusing on the Federal Reserve's monetary policy meeting, which gets underway today, and the European Central Bank's policy announcement, due on Thursday.

In commodities trading, West Texas Intermediate Crude oil futures are up $1.27 or 1.47% at $87.81 a barrel.

Gold futures are gaining $16.00 or 0.98% at $1,656.70 an ounce, while Silver futures are up $0.811 or 4.24% at $19.930 an ounce.