Canadian shares are expected to open with a slight negative bias on Thursday due to increased uncertainty regarding the U.S interest rate trajectory and rising geopolitical tensions. However, the anticipated upward movement of energy stocks, driven by firm crude oil prices, may limit the market's potential losses.
Trading activity might be dictated by specific stocks as investors react to several quarterly earnings announcements. In the earnings roundup, Telus Corporation reported an adjusted net earnings increase of 1.0%, amounting to $390 million for Q1 of 2024. This is a slight rise from the $386 million declared in Q1 of 2023.
Canadian Tire Corporation reported a Q1 net income of C$96.0 million, a significant increase from C$42.8 million in the same period of the previous year. Meanwhile, Quebecor Inc reported an adjusted income from operating activities of $163.1 million or $0.71 per basic share for Q1, marking a 19.9% increase.
On the contrary, Telus International reported a 37.5% decrease in their Q1 net income, amounting to $140 million, compared to the previous year's net income of $224 million.
After five days of consecutive gains, the Canadian market closed slightly lower on Wednesday. Nonetheless, some robust mid-afternoon buying helped the market recover from an early tumble.
Amidst geopolitical concerns and Federal Reserve rate cut uncertainties, Asian stocks ended mostly lower on Thursday. Chinese and Hong Kong markets, however, saw advancements due to encouraging trade data. European stocks marginally increased, though the prevalent mood remains cautious due to Middle Eastern tensions and persisting uncertainty over Federal Reserve rate cuts.
The Bank of England held its key policy rate at 5.25% for the sixth consecutive meeting, maintaining an interest rate last seen in early 2008. Despite seven members voting to maintain the rate, Swati Dhingra and Dave Ramsden called for a quarter-point reduction, arguing this would facilitate smoother transitions and account for transmission delays.
For the commodities market, West Texas Intermediate Crude oil futures are seeing an upward tick of $0.57 or 0.72%, landing at $79.56 a barrel. Gold futures, in contrast, are down by $1.40 or 0.05% at $2,320.30 an ounce. Conversely, Silver futures are gaining $0.329 or 1.19% at $27.930 an ounce.
