Markets

Bay Street Set To Open On Firm Note

(RTTNews) - Canadian shares are likely to open on a buoyant note Wednesday morning, tracking gains in global markets amid optimism about potential coronavirus vaccine. Encouraging economic data and higher crude oil prices are also expected to contribute to market's uptick.

The Bank of Canada is scheduled to announce its interest rate decision and economic outlook at 10 AM ET. The bank is widely expected to hold its key interest rate at 0.25%.

Meanwhile, sales of new motor vehicles rose to about 109,000 in the month of May, from 47,168 units a month earlier.

Manufacturing sales in Canada rose 10.7% in May after seeing a sharp 28.5% decline in April.

Biotech firm Moderna said its experimental vaccine for Covid-19, mRNA-1273 showed it was safe and produced strong immune responses in all 45 patients in an ongoing early-stage human trial.

On Tuesday, the benchmark S&P/TSX Composite Index ended with a gain of 269.04 points or 1.72% at 15,908.45, slightly off the day's high of 15,923.45. In early trades, the index touched a low of 15,573.41.

Asian stocks ended broadly higher on Wednesday amid optimism about a potential coronavirus vaccine. However, chinese markets lost ground due to an escalation in U.S.-China tensions, after China's foreign ministry said Beijing will impose retaliatory sanctions against U.S. individuals and entities in response to a law targeting banks doing business with Chinese officials.

European stocks are up sharply, buoyed by positive updates on a potential coronavirus vaccine and optimism about EU stimulus.

In commodities, West Texas Intermediate crude oil futures for August are gaining $0.58 or 1.44% at $40.87 a barrel.

Gold futures for August are down $5.60 or 0.31% at $1,807.80 an ounce.

Silver futures for September are up $0.175 or 0.9% at $19.705 an ounce, while Copper futures for September are gaining $0.0015 or 0.05% at $2.9340 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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