Bay Street Likely To Open Higher

Canadian shares are likely to open on a positive note Thursday morning amid continued optimism about economic recovery following several countries gradually reopening their businesses.

Investors will also be tracking quarterly earnings reports for direction.

On Wednesday, the S&P/TSX Composite Index ended up 123.91 points, or 0.82%, at 15,272.03, after scaling a low of 14,940.32 in the session.

Toronto-Dominion Bank (TD.TO) reported adjusted net income of $1.6 billion or $0.85 per share for the second quarter compared with adjusted net income of $3.27 billion or $1.75 per share a year ago. The bank said its provisions for credit losses soared to nearly $3.22 billion in the second quarter, as against credit losses of $633 million in the year-ago quarter.

Canadian Imperial Bank of Commerce (CM.TO) reported adjusted net income of $441 million for the second quarter ended April 30, 2020, compared with adjusted net income of $1.36 billion in the year-ago quarter. Adjusted EPS dropped to $0.94 in the latest quarter from $2.97 a year ago.

BRP Inc. (DOO.TO) reported a first-quarter loss of $226.1 million or $2.58 per diluted share, and warned it expected revenue in its second quarter to drop sharply compared with a year ago due to the pandemic. The company expects its revenue to fall by about 40% in the second quarter.

Asian stocks ended mixed on in a mixed performance on Thursday as stimulus announcements by Japan and the European Commission failed to ease investor concerns surrounding rising U.S.-China tensions.

European stocks are firmly in positive territory, extending gains to a fourth straight session, on optimism that efforts to ease lockdown restrictions on businesses and people will contribute to quick economic recovery.

The latest stimulus announcements from the European Union and Japan are also supporting markets' uptick.

In commodities, West Texas Intermediate Crude oil futures for July are down $0.25, or 0.72%, at $32.56 a barrel.

Gold futures for August are rising $12.50, or 0.7%, at $1,723.20 an ounce.

Silver futures for July are up $0.110, or 0.62%, at $17.867 an ounce, while Copper futures for July are gaining $0.011, or 0.5%, at $2.393 per pound.

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