As the Canadian market opens on Thursday morning, a subdued tone is anticipated, particularly with investor attention keenly focused on the financial sector following earnings announcements from major banks BMO and CIBC.
The Bank of Montreal (BMO.TO) has disclosed a net income of $2,304 million for the fourth quarter of fiscal 2024, in contrast to $1,710 million from the same quarter the previous year. In terms of adjusted net income, the latest quarter saw a figure of $1,542 million, a decrease from last year's $2,243 million.
Similarly, the Canadian Imperial Bank of Commerce (CM.TO) posted an adjusted net income of $1,889 million for the fourth quarter of fiscal 2024, up from $1,522 million.
In separate corporate news, Tecsys Inc (TCS.TO) reported a net profit of $0.8 million, equating to $0.05 per share on a fully diluted basis for the second quarter of fiscal 2025, a marked improvement from the net loss of $0.3 million, or $0.02 per share, during the same period in fiscal 2024.
Economically, Canadian trade data for October is scheduled for release at 8:30 AM ET, followed by the Ivey PMI reading for November at 10 AM ET.
On the preceding Wednesday, the Canadian market reached a new peak but struggled to retain early gains, ultimately closing with a minor increase. This was a result of losses in the energy and consumer discretionary sectors overshadowing gains made in technology and industrials. Investor sentiment was cautious as market players processed earnings reports from key banks and assessed economic indicators, while also looking towards the forthcoming U.S. non-farm payroll data expected later this week.
The S&P/TSX Composite Index momentarily achieved a new intraday high of 25,743.53 at the start of trading but subsequently fell to a low of 25,573.61 before finishing the session slightly higher at 25,641.18, marking a modest gain of 5.45 points or 0.02%.
Internationally, Asian markets ended the session mixed on Thursday. Traders were evaluating ongoing political issues in France and South Korea, alongside remarks made by Federal Reserve Chair Jerome Powell suggesting another rate cut by the U.S. central bank is imminent. In China, shares strengthened as investors looked forward to an upcoming policy meeting that might unveil new economic stimulus measures.
In Europe, markets are trading near one-month highs amid France's political turmoil, with President Emmanuel Macron seeking solutions following the dismissal of Prime Minister Michel Barnier in a no-confidence vote centered on a budget impasse. As a result, Barnier becomes the shortest-serving prime minister in modern French history. France is likely to operate without a formal government for several weeks, possibly months, until Macron appoints a new prime minister charged with forming a fresh government.
In commodity markets, West Texas Intermediate crude oil futures fell by $0.33 or 0.48%, trading at $68.21 a barrel. Gold futures experienced a marginal decline to $2,676.00 an ounce, while silver futures decreased by $0.040 or 0.13%, currently at $31.875 an ounce.
