Bay Street Likely To Open On Mixed Note

July 2024 ยท 2 minute read

(RTTNews) - Canadian shares are likely to open on a mixed note Tuesday morning with investors digesting the trend in global stock and commodity markets, and reacting to quarterly earnings updates.

The mood is likely to remain cautious once again as investors await the Federal Reserve' monetary policy announcement, and some key economic data including U.S. jobs data, and Canadian GDP report.

George Weston Limited (WN.TO) reported adjusted net earnings of $394 million for the second quarter, an increase of $17 million, or 4.5%, compared to the year-ago quarter.

Filo Corp (FIL.TO) announced that BHP and Lundin Mining Corp (LUN.TO) will acquire all of the outstanding shares of Filo that they do not already own, for C$ 4.5 billion.

The Canadian market ended weak on Monday, hurt by losses in technology and energy stocks. Stocks from the rest of the sectors turned in a mixed performance.

The benchmark S&P/TSX Composite Index, which dropped to a low of 22,703.79 in the session, settled at 22,779.57 with a loss of 35.24 points or 0.15%.

Asian stocks fell broadly on Tuesday as investors awaited cues from a slew of central bank meetings around the world and mega-cap U.S. tech earnings.

The Federal Reserve, the Bank of England and the Bank of Japan are holding monetary policy meetings this week, while Microsoft is set to report its financial results on Tuesday, Meta Platforms on Wednesday and Apple and Amazon on Thursday.

The Fed announces its monetary policy decision on Wednesday, with analysts expecting no change in interest rates. However, the accompanying statement may offer hints on whether there will be a rate cut in September.

European stocks are broadly higher with investors awaiting major corporate earnings reports, key economic data and slew of central bank meetings.

Commodities trade mostly lower as copper and iron ore prices fell on China demand concerns.

On the European economic front, France's economy posted a faster-than-expected growth in the second quarter on investment and exports, the first estimate from the statistical office INSEE showed.

GDP expanded 0.3% sequentially, beating expectations for a growth of 0.2%. The rate matched the 0.3% growth logged in the first quarter, which was revised up from 0.2%.

In commodities, West Texas Intermediate Crude oil futures are down $0.56 or 0.74% at $75.25 a barrel.

Gold futures are up $6.00 or 0.25% at $2,383.80 an ounce, while Silver futures are gaining $0.074 or 0.27% at $27.940 an ounce.

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