The Canadian stock market may open higher on Wednesday as U.S. technology stocks look set for a rebound of sorts after recent sharp losses.
Higher crude oil prices may push up energy stocks and support the market. Data showing an increase in Canadian housing starts in the month of August may help as well.
According to a report published by Canada Mortgage and Housing Corporation this morning, housing starts in Canada rose by 6.9% to 262,396 units in August 2020, up from 245,400 a month earlier. The increase was much more than an expected rise of 220,000 units.
The Bank of Canada’s interest rate decision is due at 10 AM ET. Investors will be reacting to the bank’s comments about the outlook for the economy and clues on any further stimulus to boost growth.
Worries about rising coronavirus cases in parts of Europe, and a likely delay in coronavirus vaccines after AstraZeneca paused its late stage clinical study of its vaccine due to an unexplained illness of a U.K. patient may hurt sentiment and limit market’s upside.
Asian markets ended weak on Wednesday, tracking Wall Street’s losses overnight.
The major European markets are up in positive territory thanks to higher Nasdaq futures that hint a rebound for U.S. technology stocks.
West Texas Intermediate Crude oil futures, which went down by 7.6% on Tuesday, were up $0.65 or 1.77% at $37.41 a barrel a little while ago.
Gold and Silver futures are lower by $6.40 and $0.181 at $1,936.80 an ounce and $26.180 an ounce, respectively.
The Canadian market ended weak on Tuesday, extending losses to a third straight session. The benchmark S&P/TSX Composite Index ended down 118.49 points or 0.73% at 16,099.52, after hitting a low of 15,956.04 in early trades.
The index had lost 1.5% and 1.4%, respectively in the final two sessions last week. The market remained shut on Monday for Labor Day holiday.
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