Canadian markets are poised for a positive opening on Thursday, buoyed by higher U.S. futures and increases in oil and bullion prices.
Asian markets ended the day on a strong note, and European stocks are trending upward, largely driven by the Federal Reserve's significant 50-basis point interest rate cut, which has bolstered hopes for a soft landing of the U.S. economy.
Investors will be keenly watching the forthcoming data on Canadian retail sales, producer and raw materials prices, and housing prices, slated for release on Friday.
On Wednesday, the Canadian market closed lower as investors opted to lock in profits following the Federal Reserve's first interest rate cut in four years. The S&P/TSX Composite Index fell by 85.10 points, or 0.36%, to close at 23,592.60. Although the index surged to 23,780.22 after the interest rate cut announcement, it later retraced some of those gains.
In Asia, stock markets closed substantially higher on Thursday, fueled by the Fed's unexpected 50-basis point rate reduction and signals of more easing measures in the near future, reflecting a new focus on supporting the job market.
The U.S. dollar recovered, long-term bond yields increased, and gold prices hovered near a historic high. Meanwhile, oil prices rebounded despite ongoing concerns about global demand.
European stocks are firmly in positive territory, reacting positively to the U.S. central bank's decision to lower key interest rates by 50 basis points and indicating the possibility of further cuts.
In other monetary policy news, the Bank of England has decided to maintain its rate at 5%, as anticipated. The bank stated that a "gradual approach" to monetary easing remains appropriate, especially with services inflation persistently high.
In the commodities market, West Texas Intermediate Crude oil futures have risen by $0.72, or 1.02%, to $71.63 per barrel. Gold futures have increased by $16.80, or 0.65%, to $2,615.40 per ounce, while Silver futures are up $0.828, or 2.7%, to $31.515 per ounce.
