FX.co ★ Bay Street Likely To Open On Mixed Note; Earnings, Fed Meeting In Focus

Canadian shares are expected to start mixed on Tuesday; investors will be watching commodity prices and numerous earnings updates from Canadian and U.S. companies. The key focus lies on the Federal Reserve's monetary policy meeting commencing today.

Although the Federal Reserve is predicted to leave interest rates unchanged tomorrow, attention will center on the following statement and Federal Reserve Chair Jerome Powell's press conference. Investors are, in fact, anticipating a rate cut announcement in September.

In terms of Canadian economics, finalized GDP data for February and a preliminary reading for March will be released at 8:30 AM ET.

Ivanhoe Mines Ltd. (IVN.TO) reported an adjusted EBITDA of $126 million for the first quarter of 2024, a decrease from $172 million in the same period in 2023. Meanwhile, Restaurant Brands International (QSR.TO) reported an adjusted profit of US$ 331 million, or US$ 0.73 per share for the first quarter, compared to US$ 340 million, or US$ 0.75 per share, from last year. Cameco Corporation (CCO.TO) faced a net loss of $7 million, or $0.02 per share, contrasting with a net profit of $119 million, or $0.27 per share in the first quarter of the previous year.

On Monday, the Canadian market ended slightly higher, thanks to gains in select healthcare, energy, materials, and utilities stocks. Investors were cautious ahead of the Fed policy announcement and critical economic data to be released later in the week.

The benchmark S&P/TSX Composite Index ended with a gain of 42.38 points or 0.19% at 22,011.62, ranging from 21,903.05 to 22,052.06.

Asian stocks finished higher on Tuesday; however, Chinese markets lagged following the release of mixed PMI data. European stocks remained subdued as investors awaited the Federal Reserve's monetary policy meeting and analyzed the latest economic data from the region.

According to a preliminary flash estimate by Eurostat, the euro area economy grew in the first quarter after two consecutive falls. Simultaneously, the German economy also dodged a recession, experiencing larger-than-expected GDP growth.

Meanwhile, headline inflation in the euro area stood at 2.4% in April, aligning with forecasts.

In commodities, West Texas Intermediate Crude oil futures increased by $0.58 or 0.7% to $83.21 a barrel. Gold futures dropped by $36.70 or 1.56% to $2,321.00 an ounce, while Silver futures fell by $0.875 or 3.16% to $26.785 an ounce.