Bay Street Likely To Open On Positive Note

Bay Street Likely To Open On Positive Note

Higher crude oil prices and comments from Bank of Canada Governor Tiff Macklem that the central bank is getting closer to start cutting rates from over 2-decade highs, indicate a positive start for Canadian shares on Thursday.

The market is also likely to benefit from Fed Chair Jerome Powell\'s comments that the next rate move from the central bank will most likely be an interest rate reduction.

On Wednesday, the Federal Reserve announced its decision to leave interest rates unchanged, citing a lack of further progress toward its 2 percent inflation objective in recent months.

In Canadian earnings news, Colliers International Group (CIGI.TO) reported first-quarter adjusted earnings of US$37.5 million, or US$0.77 per share, down from US$40.6 million, or US$0.86 per share, a year earlier.

Bausch Health Companies (BHC.TO) reported first-quarter revenue of $2.15 billion, compared with $1.94 billion in the first quarter of 2023, an increase of $209 million, or 11%.

Thomson Reuters (TRI.TO) reported an operating profit of US$ 556 million for the first quarter ended March 2o24, compared to US$ 508 million in the year-ago quarter.

Maple Leaf Foods Inc. (MFI.TO) reported first-quarter net earnings of $51.6 million ($0.42 per basic share) compared to a loss of $57.7 million ($0.48 loss per basic share) last year.

Canadian Natural Resources (CNQ.TO) reported adjusted net earnings of $1,474 million for the quarter ended March 2024, compared to adjusted net earnings of $1,881 million in the year-ago quarter.

BCE Inc (BCE.TO) reported first-quarter net earnings of $457 million, compared to $788 million in the year-ago quarter.

On the economic front, data from Statistics Canada showed Canada recorded a trade deficit of C$ 2.28 billion in March. Exports dropped to C$ 62.56 billion, while imports decreased to C$ 64.84 billion in the month.

The Canadian market ended marginally up on Wednesday after a slightly volatile session, with investors digesting quarterly earnings announcements, and the Federal Reserve\'s monetary policy announcement.

The benchmark S&P/TSX Composite Index, which rallied to 21,911.32 around late afternoon after the Federal Reserve announced its monetary policy, declined sharply from there to 21,728.55, settling with a small gain of 14.01 points or 0.06%.

Asian stocks ended mixed on Thursday after mixed signals from Fed Chief Jerome Powell on the outlook for inflation and interest rates.

After leaving interest rates steady on Wednesday, the Fed signaled that it is still leaning toward eventual reductions in borrowing costs, but needs more evidence that prices are cooling before cutting interest rates.

European stocks are turning in a mixed performance on Fed\'s signal that it is poised to keep interest rates higher for longer. Sentiment was also dented after a survey showed the ongoing downturn in euro zone manufacturing activity deepened in April.

In commodities, West Texas Intermediate Crude oil futures are up $0.72 or 0.91% at $79.72 a barrel.

Gold futures are down slightly at $2,310.10 an ounce, while Silver futures are lower by $0.268 or 1% at $26.480 an ounce.

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