Bay Street Seen Opening On Positive Note

(RTTNews) - Canadian shares are likely to open higher Thursday morning, tracking positive lead from Asian and European markets.

Optimism about U.S. Congressional Democrats and Republicans resolving a debt-ceiling standoff is also likely to support the market. Energy stocks may be under pressure due to lower crude oil prices.

Investors will be looking ahead to the crucial U.S. jobs data, due on Friday.

The Canadian market ended marginally up on Wednesday as stocks rallied past mid afternoon and emerged into positive territory, led by gains in the information technology section. The benchmark S&P/TSX Composite Index, which slid to 20,014.27 early on in the session, ended with a gain of 8.23 points or 0.04% at 20,191.66.

The mood remained cautious amid rising concerns about inflation and fears global central banks might soon start hiking rates. Central banks in New Zealand and Romania have already hiked their rates.

On the earnings front today, Aritzia Inc (ATZ.TO) and Richelieu Hardware Ltd. (RCH.TO) are scheduled to announce their quarterly results.

On the economic front, the Ivey School of Business will release a reading on business conditions in Canada for the month of September, at 8:30 AM ET. The Ivey Purchasing Managers Index came in with a reading of 66 in August, up from 56.4 a month earlier.

Asian stocks rallied on Thursday after news emerged that U.S. Congressional Democrats and Republicans could reach a deal to raise the debt limit by a certain level that could tide the Treasury over until December.

Chinese markets remained closed for Golden Week holidays.

European stocks are up firmly in positive territory around noon on Thursday amid easing concerns about a U.S. debt ceiling deal, and a drop in U.S. Treasury bond yields.

In commodities, West Texas Intermediate Crude oil futures for November are down $1.10 or 1.4% at $76.33 a barrel.

Gold futures are up slightly at $1,762.50 an ounce, while Silver futures are gaining $0.248 or 1.1% at $22.780 an ounce.

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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