The Canadian market is expected to start cautiously on Wednesday morning as investors analyze the country's Gross Domestic Product (GDP) data, and anticipate the Federal Reserve's announcement on monetary policy scheduled for later the day.
The Federal Reserve is forecasted to keep interest rates steady. However, the policy statement that accompanies this decision, along with Federal Reserve Chair Jerome Powell's press conference afterwards, might provide insights into when the Federal Reserve might start cutting rates.
The first glimpse of Canada's GDP growth for November, as well as the finalized data for the same month, will be released at 8:30 AM Eastern Time. Initial data indicates that Canada's economy likely saw a growth of 0.1% in November.
In earnings news, CGI Inc has reported first-quarter net earnings of $389.8 million, a 1.9% increase from the previous year.
Even though the Canadian market showed some vulnerabilities earlier in the session, it managed to close modestly higher on Tuesday. The early session drop partly mirrored profit taking, with traders capitalizing on recent market strengths amid uncertainties ahead of the Federal Reserve's monetary policy announcement.
The benchmark S&P/TSX Composite Index rebounded from its early lows, finishing up by 27.81 points or 0.1% at 21,227.87 — it’s highest closing level since April 2022.
Asian stocks ended on a weaker note on Wednesday due to disappointing Chinese manufacturing data and investor caution ahead of the U.S. central bank's interest rate decision.
The European markets have also been notably subdued, with investors assessing regional economic data and waiting for the Federal Reserve and Bank of England's monetary policy announcements. Lower earnings updates from Alphabet, Microsoft, and AMD also contributed to this downtrend.
In commodities, West Texas Intermediate Crude oil futures are down $0.84 or 1.1% at $76.98 a barrel, while gold futures are gaining $5.30 or 0.26% at $2,056.20 an ounce. Silver futures have seen a slight increase, currently priced at $23.230 per ounce.
