Canadian Shares Seen Opening Higher

Canadian Shares Seen Opening Higher

With commodity prices moving higher and Royal Bank of Canada reporting strong results, Canadian shares look poised for a positive start on Wednesday.

The market will also react to the data on retail sales for the month of June, due at 8:30 AM ET.

Expectations that the U.S.-China trade talks would result in a de-escalation of trade tensions and aid sentiment, the U.S. President Donald Trump’s remarks that he does not expect the trade talks to make any good progress may limit
market’s gains.

Energy and materials stocks may surge higher, riding on firm crude oil and gold prices.

On Tuesday, the benchmark S&P/TSX ended down 34.06 points or 0.21% at 16,296.97, more than 100 points off the day’s high of 16,398.63.

In company news, Royal Bank of Canada (RY.TO) reported net income of C$3.11 billion for third quarter, up 11% from the prior year. EPS was up 14% at C$2.10. The bank announced an increase to its quarterly dividend of 4% to C$0.98 per share.

Asian markets ended on a mixed note today, while major European markets edged higher on optimism about the outcome of U.S.-China trade talks.

In commodities, crude oil futures for October were up $1.16, or 1.76%, at $67.00 a barrel on the New York Mercantile Exchange, ahead of official inventory data from the Energy Information Administration.

Natural gas futures for were up $0.006, or 0.20%, at $2.986 per million btu.

Gold futures for December gained $6.40, or 0.53%, to $1,206.40 an ounce, as the dollar weakened again.

Silver futures for September were up $0.049, or 0.33%, at $14.815 an ounce, while Copper futures were down $0.009, or 0.35%, at $2.686 per pound.

by RTTNews Staff Writer

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