Canadian Market Likely To Open Flat; BoC, Fed Rate Decisions Eyed

(RTTNews) - Canadian and U.S. futures point to a flat start on Bay Street Wednesday morning, ahead of interest rate decisions from the Bank of Canada and the Federal Reserve.

While the Canadian Central Bank is scheduled to announce its monetary policy at 9.45 AM ET, the Fed's decision is due at 2 PM ET. Today's meeting may be the final one for Jerome Powell as Fed Chair as his term ends on May 15. Kevin Warsh is expected to take over as Fed Chair next month.

The Canadian central bank is widely expected to leave its interest rate unchanged at 2.25%. The Fed is also widely expected to hold interest rates.

The accompanying statements from the two central banks are eyed for clues about future policy moves.

On the geopolitical front, there is still not any meaningful progress to resolve the ongoing conflict in the Middle East, and the Strait of Hormuz remains effectively closed.

On the earnings front, Canadian National Railway, Fairfax Financial, CGI, Alamos Gold, West Fraser Timber, Whitecap Resources, Capstone Copper, Methanex, Bausch Health Companies, Precision Drilling Corp. and Centerra Gold are slated to report their quarterly earnings.

Canadian stocks ended weak on Tuesday, extending losses from the previous session, amid lingering concerns about the U.S.-Iran conflict.

The benchmark S&P/TSX Composite Index settled at 33,584.34, down by 233.85 points or 0.69%.

Asian stocks edged higher on Wednesday after reports suggested that Iran will likely file a revised proposal for ending the war to Pakistani mediators in the coming days. Japanese markets were closed for a public holiday.

European stocks are broadly lower with investors reacting to earnings updates and looking ahead to policy meetings of top central banks.

In commodities, West Texas Intermediate Crude oil futures are up $3.37 or 3.37% at $103.30 a barrel.

Gold futures are down $33.70 or 0.73% at $4,574.70 an ounce, while Silver futures are down $0.239 or 0.33% at $72.980 an ounce.