FX.co ★ Bay Street Likely To Open On Positive Note

Thursday looks promising for Canadian shares buoyed by elevated crude oil prices and indications from the Bank of Canada's Governor, Tiff Macklem, that the bank could begin reducing the record-high interest rates. Other positives might come from Federal Reserve's chairman, Jerome Powell's comments suggesting a probable interest rate cut for the central bank's next move.

On Wednesday, the Federal Reserve decided to maintain the status quo in interest rates, citing insufficient progress towards its inflation goal of 2% in recent months.

In terms of earnings for Canadian corporations, Colliers International Group declared an adjusted first-quarter earning of US$37.5 million (US$0.77 per share), a decrease from US$40.6 million or US$0.86 per share a year earlier. Bausch Health Companies witnessed a first-quarter revenue of $2.15 billion, an increase of $209 million or 11% from $1.94 billion in 2023's first quarter.

Thomson Reuters disclosed an operating profit of US$556 million for the first quarter ending in March 2024, compared to US$508 million in the same quarter last year. Maple Leaf Foods Inc. posted first-quarter net profits of $51.6 million ($0.42 per basic share), recovering from its loss of $57.7 million ($0.48 loss per basic share) last year.

Canadian Natural Resources posted adjusted net earnings of $1,474 million for the first quarter of 2024, a dip from $1,881 million during the same quarter the previous year. For the first quarter, BCE Inc announced net earnings of $457 million, reduced from $788 million in the year-ago quarter.

In the economic landscape, Statistics Canada data reflects that Canada had a trade deficit of C$ 2.28 billion in March. While exports fell to C$ 62.56 billion, imports declined to C$ 64.84 billion in the same period.

Wednesday saw the Canadian market close slightly higher following slight fluctuations, as investors processed quarterly earnings announcements and the Federal Reserve's monetary policy statement.

The benchmark S&P/TSX Composite Index, which reached 21,911.32 during late afternoon post the Federal Reserve's monetary policy announcement, sharply fell to 21,728.55, recording a minor gain of 14.01 points or 0.06%.

Asian stocks presented a mixed performance on Thursday due to ambiguous signals from Fed Chief Jerome Powell pertaining to inflation and interest rate outlooks.

Following the decision to maintain interest rates steady on Wednesday, the Fed suggested its tendency towards eventual borrowing cost reductions, but it needs further evidence of price easing before initiating interest rate cuts.

European stocks exhibited a mixed response following the Fed's indication that it plans to maintain the elevated interest rates for an extended period. Market sentiment was further dampened after a survey revealed that the euro zone's persisting manufacturing activity contraction deepened in April.

In commodity trading, West Texas Intermediate Crude oil futures rose by $0.72 or 0.91% to $79.72 a barrel. Gold futures saw a minor decrease to $2,310.10 an ounce, and silver futures fell by $0.268 or 1% to $26.480 an ounce.