Bay Street Likely To Open Higher On Bargain Hunting

The Canadian market is likely to open higher Tuesday morning with investors looking to pick up stocks after recent steep losses. A rebound in European markets and higher bullion prices might help lift sentiment.

Investors are also likely to react to the latest batch of earnings announcements.

George Weston Limited (WN.TO) reported adjusted net earnings of $282 million for the first quarter of 2022, an increase of $37 million, or 15.1%, compared to the first quarter of 2021.

Ivanhoe Mines (IVN.TO) said it recorded a profit of $21.5 million for Q1 2022, compared to a profit of $20.4 million for the same period in 2021.

Nuvei Corporation (NVEI.TO) reported adjusted net income of $69.1 million for the quarter ended March 2022, an increase of 35% over the year-ago quarter.

Bausch Health Companies (BHC.TO) reported adjusted net income of $263 million for the first quarter of this year, compared to $370 million for the first quarter of 2021.

Canadian stocks tanked on Monday, in line with markets across the globe, as worries about slowing growth, soaring inflation and prospects of tighter policy moves by global central banks hurt sentiment. The benchmark S&P/TSX Composite Index ended with a loss of 633.59 points or 3.07% at 19,999.69, a six-month low.

Asian stocks drifted lower on Tuesday amid worries that higher rate increases in the United States might stall global growth. Markets ended well off their day's lows after the Chinese government announced rent cuts and other aid for small businesses in a new effort to boost economic growth.

European stocks are up firmly in positive territory on Tuesday, due largely on bargain hunting after four straight days of losses. Germany's 10-year government bond yield steadied close to an almost 8-year high amid expectations that traders might have gone too far in pricing future ECB rate hikes.

In commodities trading, West Texas International Crude oil futures are down $0.51 or 0.5% at $102.58 a barrel.

Gold futures are up $4.40 or 0.25% at $1,863.00 an ounce, while Silver futures are gaining $0.115 or 0.53% at $21.935 an ounce.

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