Bay Street Seen Opening Lower On Trade Jitters, Weak Oil Prices

(RTTNews) - Canadian shares are likely to open lower Thursday morning amid uncertainty about a long-term trade deal between the U.S. and China, and falling crude oil prices.

Investors will also be reacting to a slew of quarterly earnings and economic data.

In economic news, GDP grew 0.1% in August 2019, after stalling in the previous month. Economists expected GDP to grow by 0.2% in August.

The Industrial Product Price Index in Canada went down 0.1% month-over-month in September, after a 0.2% increase in the previous month.

The Raw Materials Price Index was unchanged in September of 2019, compared with August. Year-on-year, raw materials prices fell 5.3%.

On Wednesday, the benchmark S&P/TSX Composite Index ended up 83.29 points, or 0.51%, at 16,501.43, well off an early low of 16,373.54.

In company news, Bombardier (BBD_B.TO) said it has reached an agreement to sell its aerostructures business to Spirit AeroSystems Holding, Inc. Expected cash proceeds are $500 million plus the assumptions of liabilities.

Separately, Bombardier reported a third-quarter adjusted loss per share of $0.04 compared to profit of $0.04, prior year.

SNC-Lavalin Group Inc. (SNC.TO) reported third-quarter adjusted earnings per share from E&C of C$0.94 compared to C$0.71, prior year.

Thomson Reuters (TRI.TO) reported third-quarter net loss of $44 million or $0.09 per share, compared to net income $272 million or $0.39 per share in the prior year.

Cenovus Energy Inc. (CVE.TO) reported third-quarter net earnings of C$187 million compared with a net loss from continuing operations of C$242 million a year earlier.

Gildan Activewear (GIL.TO) slashed its earnings, adjusted earnings and sales growth guidance for the full year 2019. The company now projects earnings in a range of $1.43 to $1.48 per share and adjusted earnings in a range of $1.65 to $1.70 per share on a sales decline in the low-single-digits.

Previously, the company expected earnings in a range of $1.50 to $1.55 per share and adjusted earnings in a range of $1.95 to $2.00 per share on sales growth in the mid-single-digit range.

Asian stocks turned in a mixed performance on Thursday after the U.S. Federal Reserve cut interest rates, as widely expected, but indicated it is ready to hold off on further rate cuts for now.

Investors also digested news that Chile has cancelled the Asia-Pacific Economic Cooperation summit scheduled to be held in Santiago in mid-November, citing violent protests across the country.

European stocks were moving lower amid a mixed set of earnings results investors digested a mixed set of earnings results and reacted to the Federal Reserve statement.

In commodities, crude oil futures for December were down $0.66, or 1.2%, at 54.40 a barrel.

Gold futures for December were rising $10.80, or 0.72%, at 1,507.50 an ounce.

Silver futures for December were up $0.128, or 0.72%, at $17.995 an ounce, while Copper futures for December were down $0.0280, or 1.04%, at $2.6580 per pound.

On the trade front, a report from Bloomberg says Chinese officials have doubts over prospects for a long-term trade deal with the U.S. despite the two countries moving closer to signing a "phase one" agreement.

The report cites Chinese officials as saying the U.S. President Donald Trump's impulsive nature raises concerns that he could even back out of the limited deal the two nations have signaled they want to sign in coming weeks.

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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