Canadian Market Might Start Slightly Down

Early cues from Canadian stocks suggest the market to open slightly lower on Wednesday.

Wednesday, investors might be reacting to Fed Chair Jerome Powell’s press conference and policy decisions, if any. Powell will speak to the media this afternoon after the FOMC minutes release. Hints on the Fed interest-rate decision will be of interest to the market.

The U.S. benchmark Treasury yields were down to around 4.2 percent, while it was at 5 percent in October.

Oil futures are continuing in their early position awaiting policy decisions in the speech of the Fed Chair today.

The 153 nation vote in support of the ceasefire in Gaza might watched closely by the market. The resolution, though not binding is considered a rebuke to the U.S. move last week in the Security Council.

Electric vehicle major Tesla has announced a recall of more than two million vehicles to correct an autopilot control issue. TSLA is down 1.14 percent in the pre-market today.

Gold and Silver futures are on the lower side on Wednesday.

In the corporate sector, Dollarama Inc. (DOL.TO) reported an increase in third-quarter earnings, compared to the prior year.

The quarterly earnings were C$261.1 million, or C$0.92 per share, compared to C$201.6 million, or C$0.70 per share, prior year. Ten analysts polled by Thomson Reuters were looking for profit of C$0.86.

Sales for the third quarter increased by 14.6 percent to C$1.48 billion. Comparable store sales for the third quarter increased by 11.1 percent. Analysts had expected C$1.48 billion.

The Corporation announced a quarterly cash dividend of C$0.0708 per common share, payable on February 2, 2024, to shareholders on record at the close of business on January 5, 2024.

Further, the company increased fiscal 2024 guidance for comparable store sales growth to between 11 and 12 percent and initiated adjusted earnings and organic revenue growth outlook for the full year 2023.

S&P/TSX Composite Index finished lower by 13.18 points or 0.6 percent on Tuesday at 20,318.36. There are no major Canadian economic announcements today.

European shares are trending up. CAC 40 of France is adding 11.47 points or 0.15 percent. DAX of Germany is adding 10.07 points or 0.06 percent. FTSE 100 of England is progressing by 24.42 points or 0.33 percent. Swiss Market Index is gaining 70.28 points or 0.63 percent.

Euro Stoxx 50 which provides a Blue-chip representation of supersector leaders in the Eurozone is up 0.094 percent.

Asian stocks rose on Tuesday. Chinese shares eked out modest gains.

The Shanghai Composite index rose 0.28 percent to 3,293.28 while Hong Kong’s Hang Seng index ended 0.24 percent lower at 21,113.76.

Japanese shares gained notably. The Nikkei average climbed 0.64 percent to 27,602.77 while the broader Topix index ended 0.78 percent higher at 1,993.09.

Australian markets ended slightly higher. The benchmark S&P/ASX 200 inched up 0.18 percent to 7,430.90 while the broader All Ordinaries index gained 0.19 percent to settle at 7,628.60.

On Wednesday, Asian stocks closed mixed. Chinese shares fell sharply. The benchmark Shanghai Composite index fell 1.15 percent to 2,968.76.

Hong Kong Kong’s Hang Seng index were down 0.89 percent to 16,228.75.

Japanese shares edged up. The Nikkei average rose 0.25 percent to 32,926.35 while the broader Topix index settled marginally higher at 2,354.92.

Australian markets gained modestly. The benchmark S&P/ASX 200 rose 0.31 percent to 7,257.80 while the broader All Ordinaries index gained 0.30 percent to close at 7,469.10.

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