Bay Street Likely To Open On Mixed Note; U.S. Inflation Data In Focus

Canadian shares are likely to open on a mixed note on Tuesday, with investors digesting U.S. consumer price inflation data and tracking commodity prices. While oil is slightly up, gold prices are down, suggesting a mixed start for stocks from these sectors.

U.S. inflation data is due at 8:30 AM ET. Economists expect consumer prices to climb by 0.4% in February after rising by 0.3% in January. Core consumer prices, which exclude food and energy prices, are expected to rise by 0.3% in February following a 0.4% increase in January.

The annual rate of consumer price growth is expected to come in unchanged from the previous month at 3.1%, while annual core consumer price growth is expected to slow to 3.7% from 3.9%.

A slew of U.S. data including retail sales, and industrial production, are due later in the week.

After weak start and a subsequent fall to lower levels, the Canadian market languished in negative territory till about an hour past noon on Monday, but recovered gradually to settle with a marginal gain.

The benchmark S&P/TSX Composite Index, which dropped to 21,633.91 in early trades, ended the day’s session with a gain of 19.41 points or 0.1% at 21,758.48.

Asian stocks ended mixed on Tuesday on sluggish overnight cues from Wall Street and Europe. The mood was a bit cautious as investors awaited key U.S. inflation data for some clarity over the path of interest rates.

The dollar steadied and gold slipped from record highs, while oil prices rose about half a percent ahead of the release of monthly reports from producer group OPEC and the International Energy Agency, the world’s most closely watched forecasters of oil demand growth.

European stocks are higher after having drifted down on the previous session due to uncertainty about the outlook for interest rates. Data showing a drop in German inflation aids sentiment. Weak U.K. employment and wage growth data have spurred hopes of rate cuts.

In commodities, West Texas Intermediate Crude oil futures are up marginally…