Bay Street Likely To Open On Sluggish Note

Bay Street Likely To Open On Sluggish Note

Canadian shares look headed for a sluggish start on Wednesday, with investors looking for direction amid lingering worries about trade tensions and somewhat subdued movements of commodities.

With no big economic or corporate event scheduled for the day, activity is likely to be stock specific.

On Tuesday, the benchmark S&P/TSX Composite Index ended down 92.12 points, or 0.58%, at 15,854.05, slightly off the day’s low. The index touched a high of 15,917.82 in the session.

In company news, International Petroleum Corp.and BlackPearl Resources Inc. (PXX.TO) announced that they have entered into an agreement to acquire all of the shares of BlackPearl based upon a share exchange ratio of 0.22 shares of IPC for each BlackPearl share.

Parkland Fuel Corporation (PKI.TO) and SOL Limited have entered into an agreement to complete a business combination between Parkland and SOL Investments Limited and its subsidiaries. SOL is the largest independent fuel marketer in the Caribbean and a wholly-owned subsidiary of SOL Limited.

In the currency market, the Canadian dollar advanced against its most major counterparts in early European trading on Wednesday. The loonie climbed to 87.46 against the yen and 1.4869 against the euro, from its previous lows of 87.22 and 1.4897, respectively. Against the greenback, loonie hit a 5-day high of 1.2927, rising from a low of 1.2950.

Asian stocks ended mixed on Wednesday amid growth worries. Investors were also reluctant to make significant move as they awaited more clarity on the future path of Treasury yields.

The market was also upset at the U.S. President Donald Trump’s threat to impose tariffs on $267 billion worth of additional Chinese imports if Beijing retaliates for the recent levies and other measures.

European stocks edged lower in cautious trade as investors fretted about slowing Chinese growth and watched developments around Brexit and Italy’s budget.

In economic releases, France’s industrial production grew at the slowest pace in three months in August, the statistical office Insee said. Industrial production climbed 0.3% from July, the weakest since May when it remained flat. Production had increased 0.8% in July.

The U.K. economy logged a flat growth in August as the increase in industrial production was offset by contraction in construction and farm sectors, a government report showed. Gross domestic product remained unchanged after expanding 0.4% in July. Economists expected GDP to climb 0.2%.

In U.S. economic news, data on producer prices for September will be out at 8:30 AM ET.

A report on wholesale sales in the month of August, is due at 10 AM ET.

In commodities, crude oil futures for November were declining $0.12, or 0.16%, at $74.84 a barrel.

Natural gas futures for November were up $0.061, or 1.9%, at $3.327 per million btu.

Gold futures for December were lower by $1.90, or 0.16%, at $1,189.60 an ounce.

Silver futures for December were declining $0.040, or 0.28%, at $14.360. Copper futures for December were down $0.007, or 0.23%, at $2.800 per pound.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Related posts