Canadian stocks are projected to open slightly higher on Tuesday, aided by a boost in material stocks due to an increase in metal prices. Nonetheless, caution is anticipated to persist among investors as they await the Bank of Canada's policy declarations expected on Wednesday.
The Canadian central bank is broadly anticipated to maintain its principal rate at 5%. The organization is scheduled to disclose its monetary strategy on Wednesday.
Looking at today's economic events, statistics on Canadian private sector and service sector productivity are scheduled for release at 9:30 AM ET.
In January, the S&P Global Canada Composite PMI increased to 46.3 from 44.7 in December, signaling a continuous decrease in private-sector activity for eight months straight. Moreover, the S&P Global Canada Services PMI recorded 45.8 in January 2023, a rise from November's 44.6 but still signaling an uninterrupted downturn in the country's services sector for eight months.
Concerning earnings, Pet Valu Holdings has reported an adjusted Net Income of $39.1 million or $0.54 per diluted share for the fourth quarter of 2023, signifying a 25.6% increase from the previous year. Softchoice Corporation witnessed an adjusted net income of $18.5 million for the fourth quarter of 2023, narrating its drop from $19.5 million the previous year.
On Monday, the Canadian market closed weakened due to losses in healthcare, consumer staples, and energy sectors. However, material shares enjoyed a profitable session. The benchmark S&P/TSX Composite Index concluded the day with a decrease of 21.28 points or 0.1% at 21,531.07 after briefly entering positive territory late in the afternoon.
On Tuesday, Asian stocks recorded mostly lower numbers as China's annual parliamentary week began without significant stimulus plans to bolster its economy. Meanwhile, European stocks experienced recovery from early losses though remaining somewhat inactive as investors anticipate Fed Chair Powell's congressional testimony.
In commodities, West Texas Intermediate Crude oil futures decline by $0.74 or 0.94% to $78.00 a barrel. Gold futures are up by $4.10 or 0.19% at $2,130.40 an ounce, and Silver futures increase by $0.139 or 0.58% at $24.130 an ounce.
