Canadian shares are poised to open higher on Thursday, buoyed by optimism around further Federal Reserve easing and potential additional stimulus measures from the Chinese government. Robust bullion prices are expected to spur significant buying in the materials sector, further driving the market upward.
Investors also await insights from Federal Reserve Chair Jerome Powell's speech at a Federal Reserve Bank of New York conference this morning.
Key economic data set to be released at 8:30 AM ET include Canadian average weekly earnings for July and a preliminary report on wholesale sales for August.
Fortis Inc. (FTS.TO), a regulated electric and gas utility holding company, revealed its updated capital outlook for 2025-2029, projecting expenditures of C$26 billion—C$1 billion more than the previous five-year plan. The increase is attributed to projects associated with the Midcontinent Independent System Operator's (MISO) long-range transmission plan (LRTP) and resilience investments at ITC, alongside distribution investments primarily spurred by customer growth at FortisAlberta, according to a company statement.
On Wednesday, the Canadian market closed lower, retreating from a record high achieved in the previous session. Declines in the energy and consumer discretionary sectors pressured the market, with sentiment remaining cautious amid a lack of significant catalysts. The benchmark S&P/TSX Composite Index dropped to a low of 23,876.85 in mid-afternoon trading before closing at 23,905.88, a decline of 46.34 points or 0.19%.
Asian stocks concluded notably higher on Thursday, fueled by U.S. memory chip maker Micron's forecast of better-than-expected first-quarter revenue and China's politburo's commitment to bolster fiscal support for the struggling property sector. Investor confidence was also strengthened by the Organization for Economic Co-operation and Development (OECD) marginally raising its global economic growth forecast for 2024 and predicting further Federal Reserve rate cuts next year.
European stocks are trading firmly in positive territory, lifted by expectations of a significant U.S. interest rate cut this year and fresh optimism regarding Chinese stimulus measures. Meanwhile, the Swiss National Bank has reduced its key policy rate by 25 basis points for the third consecutive meeting, indicating the potential need for additional rate cuts in the coming quarters to maintain price stability over the medium term.
In terms of economic releases, a survey jointly conducted by GfK and the Nuremberg Institute for Market Decisions indicates that German consumer confidence is set to moderately recover in October despite a weaker economic outlook.
In the commodities market, West Texas Intermediate Crude oil futures are down $2.07 or 3.01% at $67.62 per barrel. Gold futures are up $21.60 or 0.8% at $2,706.20 per ounce, while Silver futures are rising by $0.837 or 2.6% at $32.855 per ounce.
