(RTTNews) - Canadian stocks are likely to open on a negative note on Wednesday amid rising tensions in the Middle East following fresh attacks by Iran and U.S. forces. Investors will also be reacting to the Bank of Canada's monetary policy announcement, due shortly after the opening bell.
The Canadian bank is widely expected to hold interest rate unchanged for a fifth straight meeting. The central bank's views on the economy and future policy stance are eyed.
In Middle East news, the U.S. military launched fresh strikes against Iran in a very strong, powerful response to the downing of a U.S. Army Apache helicopter off the Oman coast.
According to reports, U.S. fighter jets struck Iranian air defense systems and radar sites near the Strait of Hormuz.
Iran also launched missiles and drones against several Gulf nations, including Bahrain, Jordan and Kuwait, and warned that "heavier and broader" attacks would follow if the United States continued aggression against Iran.
The Canadian market closed weak on Tuesday, weighed down by losses in energy and materials sectors as commodity prices fell amid risng tensions in the Middle East.
The benchmark S&P/TSX Composite Index , which tumbled to an intraday low of 33,990.51, recovered well to settle at 34,411.69, down by just 67.05 points or 0.19%.
Asian stocks ended mostly lower on Wednesday as Middle East tension flared again, and regional inflation data underscored persistent price pressures. Traders also awaited cues from key U.S. CPI data that might show inflation at a three-year high in May.
The major European markets are down in negative territory today with investors largely staying cautious amid rising tensions in the Middle East following the U.S. and Iranian forces engaging in hostile strikes.
In commodities trading, West Texas Intermediate Crude oil futures are up $1.70 or 1.85% at $89.90 a barrel.
Gold futures are down $102.70 or 2.39% at $4,183.70 an ounce, while Silver futures are down $1.355 or 2.08% at $63.855 an ounce.
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