(RTTNews) - Canadian shares are likely to open on a positive note Wednesday morning, tracking cues from Asian and European markets, and higher crude oil prices.
The focus will be on the Federal Reserve's monetary policy statement, due later in the day. The Fed is widely expected to hold rates. Fed officials have already made it clear that it would take a meaningful change from current conditions to prompt another cut.
The central bank's view on balance sheet expansion will be eyed.
Investors will also be following the developments related to the virus outbreak in China. Concerns about the potential impact of spread of virus attack on the global economy may limit market's upside.
On Tuesday, the benchmark S&P/TSX Composite Index ended up 58.36 points, or 0.33%, at 17,500.88, after scaling a low of 17,456.06 and a high of 17,518.95 intraday.
In company news, Canadian National Railway (CNR.TO) said its net income dropped 24% to $873 million in the quarter ended Dec. 31, compared with $1.14 billion in the same period in 2018.
However, the company's CEO JJ Ruest expressed cautious optimism about the second half of 2020.
"The trade environment, when you look at how negative it was last year and how things seem to be at least turning, in the quarters to come we will start to see some of the positives of that," Ruest said. The pending ratification of the new North American free trade pact "can only be positive, it's not going to be a huge positive, but rather than going backwards we're going to be moving forwards," he added.
Asian markets ended mostly higher on Wednesday, buoyed by an upward revision in Apple's sales forecast and on data showing a notable improvement in U.S. consumer confidence.
Traders continued to keep an eye on developments related to the coronavirus outbreak in China, and awaited the Federal Reserve's monetary policy statement, due later in the day.
European markets are up in positive territory with investors looking ahead to the Federal Reserve's monetary policy announcement. A fairly encouraging batch of economic data from the euro area aided sentiment.
In commodities, West Texas Intermediate Crude oil futures for March are rising $0.34, or about 0.65%, at $53.82 a barrel.
Gold futures for February are up marginally at $1,570.50 an ounce.
Silver futures for March are gaining $0.012, or 0.07%, at 17.470 an ounce, while Copper futures for March are up $0.0085, or 0.33%, at $2.5880 per pound.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
