Canadian shares are anticipated to open with a negative inclination on Tuesday morning, influenced by weaker global markets and declining commodity prices. The impending Canadian inflation data is expected to significantly affect market sentiment.
Canadian inflation figures for April are scheduled for release at 8:30 AM ET. The annual inflation rate in Canada increased to 2.9% in March from an eight-month low of 2.8% in February. Meanwhile, the annual core inflation rate decelerated to 2% in March 2024, marking the lowest level since March 2021, down from 2.1% in February.
On Friday, the Canadian market concluded trading on a firm note, buoyed by substantial gains in the materials and energy sectors, amid rising commodity prices due to rate cut speculations and optimism regarding demand forecasts.
The benchmark S&P/TSX Composite Index closed with a gain of 165.54 points, or 0.74%, reaching 22,465.37, just shy of the day's peak at 22,468.52. Over the week, the index saw an overall gain of approximately 0.7%.
Asian stocks ended lower on Tuesday, pressured by interest rate concerns after the minutes from the May 2024 Reserve Bank of Australia meeting indicated that the central bank had considered raising interest rates.
European stocks are also trading in negative territory, driven by inflation fears and interest rate outlook concerns following cautious remarks from some Federal Reserve officials.
In the commodities market, West Texas Intermediate Crude oil futures have decreased by $1.49, or 1.88%, to $78.31 per barrel. Gold futures have declined by $10.40, or 0.42%, to $2,428.10 an ounce, while Silver futures are down by $0.371, or 1.14%, to $32.055 an ounce.