Canadian Stocks Set To Open Firm On Global Gains, Metal Surge

(RTTNews) - Canadian stocks are likely to open on a firm note on Wednesday, tracking positive global markets and higher precious metals prices. Lower oil prices have helped ease concerns about inflation a bit. The victory of the Democrats in the midterm polls in the US may also aid sentiment.

In earnings news, Intact Financial Corporation reported a 35% decline in third-quarter profit, reflecting weaker underwriting results amid higher catastrophe losses and unfavourable investment-related movements. Net income attributable to shareholders fell to C$562 million, or C$3.03 per share, from C$861 million, or C$4.73 per share, in the prior-year quarter.

Shopify Inc. reported earnings per share of $0.49 for the third quarter, compared with $0.34 a year earlier.

Maple Leaf Foods reported earnings from continuing operations of $22.3 million in the third quarter, compared with $43.1 million in the year-ago quarter.

Vermilion Energy reported net loss of $35 million, or $0.23 per basic share for the third quarter.

Manulife Financial, Great-West Lifeco, Sun Life Financial, Nutrien, Pan American Silver Corp., B2Gold Corp., Colliers International, Linamar, Kinaxis, Russel Metals and Jamieson Wellness are scheduled to report their earnings later in the day.

On the economic front, data on Canada's trade balance is due at 8:30 AM ET.

The S&P Global Composite and Services PMI reading for the month of October will be out at 9:30 AM ET.

Bay Street ended notably lower on Tuesday, erasing the gains from the previous session, as investors refrained from big moves with the crucial U.S. midterm elections underway. Market attention also shifted to the U.S.-Iran conflict where both sides are showing interest in the peace process.

The benchmark S&P/TSX Composite Index traded firmly negative throughout the session before settling at 35,532.28, down by 268.81 points or 0.75%.

Asian stocks ended mixed on Wednesday after Democrats took control of both houses of Congress in a dramatic win in the U.S. midterm elections, raising uncertainty over tech regulation, trade policy and the U.S. budget deficit.

The major European markets are up firmly in positive territory with investors reacting to earnings updates, lower oil prices, and the political developments in the U.S.

West Texas Intermediate Crude oil futures are down $1.33 or 1.37% at $94.76 a barrel.

Gold futures are gaining $114.50 or nearly 3% at $4,054.90 an ounce, while Silver futures are up $2.417 or 4.85% at $52.170 an ounce.