Canadian shares are expected to have a mixed opening on Tuesday morning, as investors exercise caution ahead of upcoming U.S. consumer price inflation data and the Federal Reserve's monetary policy announcement scheduled for later this week.
It is generally anticipated that the Federal Reserve will keep interest rates unchanged. However, market participants will closely scrutinize the updated economic and rate projections from Fed officials.
In notable corporate developments, Fairfax Financial Holdings Inc (FFH.TO) has increased its investment in Ensign Energy Services (ESI.TO) by purchasing 3.79 million shares at $2.34 each, mirroring Monday's closing price.
Copperleaf Technologies Inc (CPLF.TO) has entered into an agreement with Industrial and Financial Systems, whereby the latter will indirectly acquire all outstanding common shares of Copperleaf at $12 per share.
Descartes Systems Group (DSG.TO) announced its acquisition of BoxTop Technologies Ltd, a provider of software for logistics service companies, in a deal worth US$13 million.
On the economic front, Statistics Canada reported that building permits in Canada surged by 20.5% in April, a significant rebound from the 12.3% decline seen in March.
The Canadian market posted modest gains on Monday, bolstered by rises in technology, energy, and materials sectors. Nonetheless, investor sentiment remained cautious as they awaited the Federal Reserve's monetary policy announcement and U.S. consumer price inflation data.
The S&P/TSX Composite Index closed 62.76 points higher, or 0.29%, at 22,069.76, oscillating within a tight range between a low of 21,953.44 and a high of 22,105.69.
In Asia, most stock markets closed lower on Tuesday. Gains by far-right parties in the European Parliament elections introduced additional uncertainty to the EU's political landscape, coinciding with investor anticipation of critical U.S. inflation data and the Federal Reserve's policy meeting outcomes. Concerns about interest rates also dampened investor sentiment, with reduced expectations for rate cuts this year.
In Europe, stocks are firmly in negative territory as the market awaits Wednesday's U.S. consumer price data and the Federal Reserve's interest rate decision.
In commodities, West Texas Intermediate Crude oil futures have declined by $0.27 or 0.35% to $77.47 per barrel. Gold futures have risen by $6.90 or 0.3%, reaching $2,333.90 per ounce, while Silver futures have fallen by $0.246 or 0.82%, currently priced at $29.628 per ounce.
