Canadian Market Seen Opening On Positive Note

(RTTNews) - Canadian shares look headed for a positive start on Wednesday thanks to strong earnings updates from Google and Microsoft, and firm crude oil prices.

The Federal Reserve's interest rate decision, due later in the day, will be in focus. The central bank is likely to raise rates by 75 basis points.

The accompanying statement and Fed Chair Jerome Powell's press conference are likely to attract greater attention that the central bank's rate decision.

Investors will also be reacting to a slew of earnings announcements from Canadian companies.

In earnings news, Precision Drilling Corp. (PD.TO) reported lower than expected second-quarter net loss of C$25 million or C$1.81 per share, compared with a net loss of C$76 million or C$5.71 per share in the prior year.

Loblaw Companies Limited (L.TO) reported second-quarter net earnings of C$387 million or C$1.16 per share as compared to C$375 million or C$1.09 per share in the prior-period quarter.

Rogers Communications Inc. (RCI.A.TO) reported adjusted net income of $463 million for the quarter ended June 30, 2022, up 20%, compared with adjusted net income of $387 million in the year-ago quarter.

Cameco Corporation (CCO.TO) reported adjusted net earnings of $72 million for the quarter ended June 30, 2022, as against net loss of $38 million a year ago.

The Canadian market ended notably lower on Tuesday after staying weak right through the day's session, as rising signs of slowing economic growth and looming policy tightening by central banks rendered the mood bearish. The benchmark S&P/TSX Composite Index ended with a loss of 131.80 points or 0.69% at 18,972.68, nearly 50 points off the session's low of 18,923.42.

Asian stocks turned in a mixed performance on Wednesday after Alphabet and Microsoft reported better than feared quarterly results, helping soothe investor worries over the economic outlook.

Market participants awaited the Fed's interest rate decision later in the day, with a 75 basis point rate hike mostly priced in.

European stocks are modestly higher a little past noon on Wednesday with investors awaiting the Fed's rate decision.

In commodities trading, West Texas Intermediate Crude oil futures are up $0.71 or 0.75% at $95.69 a barrel.

Gold futures are up marginally at $1,718.50, while Silver futures are gaining $0.165 or 0.89% at $18.700 an ounce.