Canadian stocks may see a mixed opening today, given the diverse trends within the commodities markets and reactions to the monetary policy statement by the European Central Bank.
Canadian businesses are showing signs of resilience, according to a report by the Canadian Federation of Independent Business (CFIB). The CFIB's Business Barometer, an indicator of business performance expectations over the next year, increased slightly to 49 in January 2024, up from 47 in December—marking the highest level in five months.
In other economic news, we expect the release of data detailing average weekly earnings for November and a report on Canadian manufacturing sales for December at 8:30 AM ET.
In corporate news, CGI Inc has renewed a technology services contract with the National Bank of Canada. The company has confirmed a new decade-long agreement that supports the bank's operations and customer experience.
Stock markets saw a marginal decline on Wednesday after enjoying four consecutive days of gains. Investors had to reassess Canada’s economic climate following the Bank of Canada maintaining its benchmark interest rate and expressing concern about potential inflation risks. Despite reaching an early peak of 21,161.22, the benchmark S&P/TSX Composite Index ended the day slightly lower at 21,025.78—a loss of 8.81 points or 0.04%.
Asian stocks, however, experienced a boost triggered by China’s unexpected reduction of banks’ reserve requirements by 50 basis points. The move, which fuels economy-supporting liquidity, sparked market excitement.
Despite this, European stocks have struggled with negative territory, led by a decline in Germany's Business Confidence index reported by the ifo Institute. The index dipped to 85.2 in January from 86.3 in December, which was below the projected 86.7.
On another note, the European Central Bank has decided to keep the interest rates steady this month. ECB President Christine Lagarde has suggested that a rate cut discussion is not expected until summer.
In commodities, West Texas Intermediate Crude oil futures have risen to $75.90 a barrel – an increase of $0.81 or 1.08%. Gold futures are slightly down to $2,014.70 an ounce, a decrease of $1.30 or 0.06%. Conversely, Silver futures stand at $22.970 an ounce, gaining $0.081 or 0.33%.
