Bay Street Likely To Open Higher

Higher index futures and firm crude oil prices indicate a positive start for Canadian shares on Wednesday. Investors will be reacting to a slew of quarterly earnings announcements.

The mood is likely to remain a bit cautious at times with investors looking ahead to the upcoming U.S. jobs data for the month of July, due later in the week.

In earnings news, Colliers International Group Inc. (CIGI.TO) reported revenues of $1.13 billion for the quarter ended June 30, 2022, up 19% over the year-ago quarter.

Endeavour Mining Plc (EDV.TO) reported adjusted net earnings of $111 million for the quarter ended June 30, 2022, compared with $134 million in the previous quarter.

Boralex Ltd. (BLX.TO) announced that it posted net earnings of $14 million for the quarter ended June 2022, as against net loss of $12 million for the corresponding period in 2021.

Nuvista Energy (NVA.TO) reported net earnings of $178 million for the April - June 2022 quarter, as against net loss of about $11 million in the year-ago quarter.

The Canadian market ended notably lower on Tuesday, led by sharp losses in materials and energy sectors. There were gains for technology and healthcare stocks, but the market remained in negative territory right through the day's session.

Worries about slowing global growth, and tensions between the U.S. and China due to U.S. House Speaker Nancy Pelosi's trip to Taiwan weighed on the market. The benchmark S&P/TSX Composite Index ended with a loss of 187.59 points or 0.95% at 19,505.33, near the day's low of 19,486.68.

Asian stocks turned in a mixed performance on Wednesday after a private survey showed China's services sector grew at a faster clip in July from the previous month as a result of easing COVID-19 curbs. The mood was cautious after U.S. House Speaker Nancy Pelosi's visit to Taiwan triggered a strong reaction from China.

After opening weak, European stocks are modestly higher in cautious trade today with investors weighing the possible impact of U.S.-China tensions on global economy. Markets have shrugged off the latest survey results suggesting that Eurozone business activity contracted in July amid a downturn in the manufacturing sector and slowing in the service economy.

In commodities trading, West Texas Intermediate Crude oil futures are up $1.40 or 1.47% at $95.82 a barrel.

Gold futures are down $8.30 or 0.45% at $1,781.40 an ounce, while Silver futures are down $0.114 or 0.57% at $20.025 an ounce.

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