Bay Street saw the opening on a positive note
(RTTNews) – Canadian stocks are expected to open higher Thursday morning, following the positive advance of Asian and European markets.
Optimism about Democrats and Republicans in the US Congress resolving a debt ceiling deadlock is also likely to support the market. Energy stocks could be under pressure from falling crude oil prices.
Investors will eagerly await crucial US employment data, due on Friday.
The Canadian market finished slightly higher on Wednesday as stocks rallied after mid-afternoon and came out in positive territory, led by gains in the information technology section. The S & P / TSX Composite Index, which slipped to 20,014.27 early in the session, ended with a gain of 8.23 points or 0.04% to 20,191.66.
The mood remained cautious amid growing concerns over inflation and fears that global central banks would start raising rates soon. The central banks of New Zealand and Romania have already raised their rates.
On the earnings side today, Aritzia Inc (ATZ.TO) and Quincaillerie Richelieu Ltée (RCH.TO) are expected to report their quarterly results.
On the economic front, the Ivey School of Business will be releasing a reading on economic conditions in Canada for the month of September at 8:30 a.m. ET. The Ivey Purchasing Managers Index stood at 66 in August, down from 56.4 a month earlier.
Asian stocks rallied on Thursday after news that Democrats and Republicans in Congress could reach an agreement to raise the debt limit to a certain level, which could push the Treasury back into December.
Chinese markets remained closed for the Golden Week holidays.
European equities were firmly in positive territory around noon Thursday amid easing concerns over a US debt ceiling deal and lower yields on US Treasury bonds.
In commodities, West Texas Intermediate crude oil futures for November were down $ 1.10 or 1.4% to $ 76.33 a barrel.
Gold futures are edged up to $ 1,762.50 an ounce, while silver futures are up $ 0.248 or 1.1% to $ 22,780 an ounce.
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