logo
Plus   Neg
Share
Email

Bay Street Likely To Open On Cautious Note

The Canadian stock market is likely to open on a cautious note on Wednesday, with weak industrial output and retail sales growth data raising concerns about the impact of U.S.-China trade war on the global economy.

Investors will also be reacting to Canada's April consumer price inflation data and U.S. retail sales and industrial production data, due ahead of the opening bell this morning.

On Tuesday, the benchmark S&P/TSX Composite Index snapped a three-day losing streak and ended up 91.12 points, or 0.56%, at 16,284.53, after scaling a low of 16,206.22 and a high of 16,320.89 in the session.

In company news, Aurora Cannabis Inc. (ACB.TO) reported net loss of C$158.3 million, or CS$0.16 per share, for the third quarter ended March 2019.

SNC-Lavalin (SNC.TO) announced that the PSK Construction joint venture, composed of SNC-Lavalin, Pomerleau and Construction Kiewit Cie has signed a contractual agreement for the City-Side Development Program of the Aéroports de Montréal (ADM).

The Stars Group Inc. (TSGI.TO) reported a 23.9% drop in adjusted net earnings for the quarter ended March 2019, at $105.6 million, from net earnings of $138.8 million in the year-ago quarter.

Enghouse Systems Limited (ENGH.TO) said it has acquired Vidyo, Inc. for a purchase price of approximately $40 million. Vidyo's annual revenue is approximately $60 million.

Asian markets ended mostly higher on Wednesday amid easing concerns over trade war after the U.S. President Donald Trump said dialogues would continue.

Expectations of more stimulus from the Chinese government to boost growth pushed up stock prices in the Chinese market. However, weak economic data limited market's upside.

Industrial production in China advanced 5.4% year-on-year in April, following March's 8.5% increase, figures from the National Bureau of Statistics showed. The growth rate was forecast to slow moderately to 6.5%.

Annual growth in retail sales eased to 7.2% from 8.7% a month ago. Sales were expected to expand 8.6%.

European stocks are mostly subdued with traders booking some profits. Positive eurozone GDP data is limiting losses.

Data from Eurostat showed eurozone's quarterly economic growth rate doubled in the first three months of the year.

GDP grew 0.4% from the fourth quarter of 2018, when the economy expanded 0.2%. The pace of growth in the first quarter was the strongest since the second quarter of 2018.

In commodities, crude oil futures for June are down $0.60, or 0.98%, at $61.18 a barrel.

Gold futures for June are rising $4.90, or 0.37%, at $1,301.20 an ounce.

Silver futures for July are up $0.008, or 0.05%, at $14.820 an ounce, while Copper futures for July are down marginally at $2.7240 per pound.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT