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Bay Street Likely To Open Higher

Canadian shares are likely to open slightly higher Tuesday morning, tracking firm crude oil prices. Data on Canadian housing starts and producer prices are likely to make an impact on price movements.

The focus will be on the upcoming monetary policy announcement from the Federal Reserve, due on Wednesday. The Fed is widely expected to leave its monetary policy unchanged, but investors will be looking for any clues the central bank is considering tapering its asset purchases.

On Monday, the Canadian market ended slightly higher after looking for direction. The benchmark S&P/TSX Composite Index crept up 19.30 points or 0.1% to a new record closing high of 20,157.65.

Denison Mines Corp. (DML.TO) announced Tuesday that it has entered into a binding agreement to acquire 50% ownership of JCU (Canada) Exploration Company, Limited from UEX Corp. for cash consideration of C$20.5 million. The deal follows UEX's expected acquisition of JCU from Overseas Uranium Resources Development Co., Ltd. or OURD.

Asian stocks ended higher on Tuesday with investors making some purchases as they looked ahead to the Federal Reserve's monetary policy announcement, due on Wednesday. Japanese stocks gained after the Bank of Japan said it would consider extending its pandemic-relief programs to support a fragile economic recovery.

However, Chinese and Hong Kong Markets closed weak.

European stocks are modestly higher amid hopes for a swift and lasting economic recovery from the coronavirus pandemic.

Investors await the outcome of a two-day policy meeting of the Federal Reserve starting later in the day for indications of the central bank's view on recent inflation rises.

In commodities, West Texas Intermediate Crude Oil futures are up $1.02 or about 1.44% at $71.90 a barrel.

Gold futures are up marginally at $1,866.70 an ounce, while Silver futures are down $0.289 or 1.02% at $27.750 an ounce.

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