Canadian equities are poised for another mixed session as investors digest U.S. inflation data and numerous corporate earnings reports. A potential uptick in materials shares is likely, spurred by firm metal prices.
In company earnings:
- **AtkinsRéalis (SNC-Lavalin Group Inc.) (ATRL.TO)** reported an adjusted net income of $73.8 million, or $0.42 per diluted share for Q1 2024, compared to $55.4 million, or $0.32 per diluted share in the same quarter of the previous year.
- **Boyd Group Services Inc (BYD.TO)** disclosed a decrease in net earnings to $8.4 million in Q1 2024, down from $20.8 million in the corresponding period of 2023.
- **Boralex Inc (BLX.TO)** announced a first-quarter net earnings of $73 million, a $28 million increase year-over-year.
On the economic data front, Canadian housing starts for April are scheduled to be released at 8:15 AM ET, followed by a report on March Canadian manufacturing sales at 8:30 AM ET.
On Tuesday, Canadian stocks remained positive until mid-morning but then dipped into negative territory as investors searched for market direction. The U.S. producer price inflation for April showed a larger-than-expected increase, raising concerns that the Federal Reserve may maintain higher interest rates for an extended period.
The **S&P/TSX Composite Index** closed down by 15.83 points or 0.07% at 22,243.34, having fluctuated between an intraday high of 22,309.03 and a low of 22,182.88.
In global markets, Asian stocks had a mixed performance on Wednesday. Notably, markets in Hong Kong and South Korea were closed for Buddha's birthday.
In response to comments from Federal Reserve Chairman Jerome Powell, suggesting that the central bank is unlikely to raise its key interest rate to combat persistent inflation, the U.S. dollar and bond yields dipped while gold prices edged higher.
Following the unexpected uptick in producer price data for April, traders are now keenly awaiting key U.S. CPI figures for further clues on the Federal Reserve's future actions.
European stocks are trending broadly higher, buoyed by preliminary data from Eurostat indicating that the eurozone economy has rebounded in the first quarter after two consecutive quarters of contraction.
In the commodities market:
- **West Texas Intermediate (WTI) crude oil futures** are down $0.52 or 0.67% at $77.50 a barrel.
- **Gold futures** have gained $9.50 or 0.41%, currently at $2,369.40 an ounce.
- **Silver futures** are up $0.333 or 1.15%, trading at $29.035 an ounce.
