The Canadian market today is expected to feel the impact of weak crude oil and bullion prices. The main areas of focus will be the earnings updates from key banks and significant economic data, namely, U.S. inflation figures, and Canada's GDP and manufacturing activity data set to be released this week.
The Royal Bank of Canada (RBC), has announced a net income of $3.6 billion for the quarter, ended on January 31, 2024. This is an increase of $449 million or 14% from the previous year. In contrast, the adjusted net income was $4.1 billion for the first quarter, representing a 5% decrease from the corresponding period last year.
Similarly, the National Bank of Canada reported a 5% rise in its first-quarter net income, clocking in at $922 million, up from $876 million in the first quarter of 2023. The first-quarter diluted earnings per share came out to be $2.59 compared to $2.47 in the corresponding quarter of 2023.
Meanwhile, George Weston Ltd reported a drop in its adjusted net earnings by $27 million or 7.3% from the same quarter last year, registering a total of $342 million for the fourth quarter of 2023.
In contrast, MDA Ltd. reported an increase in its fourth-quarter earnings, rising from C$8.8 million to C$13.5 million compared to the same period last year. The company projects a revenue range of C$205 million to C$215 million for the first quarter of the running year.
At the economic front, Canada's current account data for the fourth quarter of 2023 is scheduled to be released at 8:30 AM ET. Likewise, a report on the average weekly earnings in Canada for December is also expected to be released at the same time.
The Canadian market saw a slight decrease on Tuesday, marking a relatively stagnant session. Investors hesitated to make substantial moves while waiting for crucial economic data. The benchmark S&P/TSX Composite Index ended 5.41 points lower or 0.03%, coming out to 21,318.90.
Asian stocks showed mixed results on Wednesday with ongoing concerns about rate cuts. Investors are eagerly anticipating the release of U.S. and Eurozone inflation figures, as well as Chinese PMI data for the week.
European stocks are generally lower, as investors respond to a flurry of earnings updates and await critical U.S. and Eurozone inflation data, as well as Chinese PMI data.
In terms of commodities, West Texas Intermediate Crude oil futures fell by $0.81 or 1.01%, now standing at $78.06 a barrel. Gold futures have fallen by $6.80 or 0.33%, now costing $2,037.30 per ounce. Similarly, Silver futures have seen a decrease of $0.182 or 0.81%, coming in at $22.350 per ounce.
