Bay Street Likely To Open Slightly Lower

(RTTNews) - Lower crude oil futures and rising U.S.-China tensions point to a weak start for the Canadian stock market Thursday morning. Investors are also likely to react to Federal Reserve Chairman Jerome Powell's speech at the virtual Jackson Hole conference.

On the economic front, data on Canada's current account deficit in the second quarter, and average weekly earnings are due before the opening bell.

The market ended on a buoyant note on Wednesday, led by gains in technology, financial and materials shares. The benchmark S&P/TSX Composite Index closed with a strong gain of 172.49 points or 1.04% at 16,789.97.

Toronto-Dominion Bank (TD.TO) group reported a net profit of $2.25 billion or $1.21 per diluted share for the third quarter ended July 31, 2020. That was down from a profit of $3.25 billion or $1.74 per diluted share a year ago. However, the numbers were better than what the market had expected.

Canadian Imperial Bank of Commerce (CM.TO) announced that it posted a net profit of $1.17 billion or $2.25 per diluted share in the third quarter of this year, down from $1.4 billion or $3.06 per diluted share a year earlier.

Asian stocks ended mixed on Thursday as investors made cautious moves as they looked ahead to Federal Reserve Chairman Jerome Powell's speech at the annual central bankers' conference. Geopolitical concerns also contributed to largely lackluster trading in the Asian markets.

European markets are exhibiting weakness amid an escalation in tensions between the U.S. and China, after the U.S. blacklisted 24 Chinese firms and targeted individuals it alleged to have been part of construction and military actions in the South China Sea. Beijing reportedly fired four missiles into the disputed waterway.

In commodities, West Texas Intermediate crude oil futures for October are down $0.28 or 0.65% at $43.11 a barrel.

Gold futures for December are lower by $4.00 or 0.21% at $1,948.50 an ounce.

Silver futures for September are down $0.064 or 0.23% at $27.385 an ounce, while Copper futures for September are down $0.0040 or 0.14% at $2.9565 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.

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