Bay Street looks headed for a flat to slightly weak opening on Wednesday, tracking lower commodity prices. The market will focus on earnings reports and other corporate news for direction.
Energy stocks are likely to stay sluggish due to falling crude oil prices.
On Tuesday, the benchmark S&P/TSX index ended up 24.51 points or 0.15% at 16,519.24, after scaling a low of 16,445.23 and a high of 16,545.26 intraday.
In corporate news, Saputo Inc. (SAP.TO) has announced that it has entered into an agreement with Bega Cheese Limited (BGA.AX) to sell its Koroit plant in Victoria, Australia for about C$244 million or A$250 million in cash.
MTY Food Group Inc. (MTY.TO) has declared a quarterly dividend of 15 cents per share, payable on August 15, 2018 to shareholders registered in the Company’s records at the end of the business day on July 31, 2018.
In company news from U.S., Morgan Stanley has reported earnings that largely fell in line with expectations.
IBM, eBay Inc., and American Express are scheduled to report their quarterly earnings after trading hours today.
In commodities, crude oil futures for September delivery are down 0.4% at 466.88 a barrel on the New York Mercantile Exchange, after data from American Petroleum Institute showed US crude stockpiles to have unexpectedly increased by over 600,000 barrels last week.
Resumption of exports from three Libyan ports is also contributing to the fall in crude prices. According to reports, Iran has filed a lawsuit at the International Court of Justice against U.S. sanctions.
Meanwhile, traders are looking ahead to supply data from the Energy Information Administration, due at 2.30 PM ET.
Gold prices are lower once again, as the dollar continued its upmove against major currencies. Gold futures for August declined to a low of $1,220.90 an ounce, before edging up to $1,223.30, still down $4.00 or 0.33% from previous close. On Tuesday, gold futures tumbled $12.40 or 1%.
The greenback is gaining in strength following U.S. Federal Reserve Chair Jerome Powell’s testimony on Tuesday hinting at gradual rate hikes. The dollar index is up 0.36 or 0.38% at 95.09.
On the economic front, market will focus on U.S. Federal Reserve Chair Jerome Powell’s testimony before the House Financial Services Committee, due at 10 AM ET.
Testifying before the Senate Banking Committee yesterday, Powell gave an upbeat assessment about the economy and said hiking interest rates gradually is the best way forward to keep inflation at the target level.
In more economic news from U.S., the data on housing starts and building permits for the month of June will be out at 8.30 AM ET.
At 2 PM ET., the Fed will release its beige book on the economy.
On Tuesday, Japan and the European Union signed a trade agreement that would facilitate movement of more goods and services between the two economies.
by RTTNews Staff Writer
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