Bay Street Likely To Open Marginally Higher

Canadian shares may open marginally up Tuesday morning with materials shares finding some support thanks to higher metal prices. However, the mood is likely to remain cautious once again with investors awaiting the Bank of Canada’s policy announcement on Wednesday.

The Canadian central bank, which is scheduled to announce its monetary policy on Wednesday, is widely expected to hold its benchmark rate at 5%.

On the economic front today, data on Canadian private sector and service sector activity are due at 9:30 AM ET.

The S&P Global Canada Composite PMI rose to 46.3 in January from 44.7 in the previous month, pointing to the eighth consecutive decline in Canadian private-sector activity.

The S&P Global Canada Services PMI posted 45.8 in January 2023, up from November’s 44.6, but still marking the eighth consecutive month of contraction in the country’s services sector.

In earnings news, Pet Valu Holdings (PET.TO) reported adjusted Net Income of $39.1 million or $0.54 per diluted share for fourth-quarter of 2023, both up 25.6% versus the prior year.

Softchoice Corporation (SFTC.TO) reported adjusted net income of $18.5 million for the fourth quarter of 2023, compared to adjusted net income of $19.5 million in the year-ago quarter.

The Canadian market ended weak on Monday, weighed down by losses in healthcare, consumer staples and energy sectors. Materials shares had a good session.

The benchmark S&P/TSX Composite Index, which briefly made it to positive territory around late afternoon, ended down by 21.28 points or 0.1% at 21,531.07.

Asian stocks ended mostly lower on Tuesday as China’s week-long annual session of parliament commenced without any big-ticket stimulus plans to prop up the struggling economy.

European stocks have recovered from early losses, but still remain quite subdued as investors await Fed Chair Powell’s congressional testimony.

In commodities, West Texas Intermediate Crude oil futures are down $0.74 or 0.94% at $78.00 a barrel.

Gold futures are gaining…