FX.co ★ Bay Street Seen Opening On Mixed Note

Canadian stocks are anticipated to start on a mixed note this Wednesday morning, reflecting trends in commodity prices. Investors will be closely monitoring key earnings reports from major U.S. corporations. Speculation over further interest rate cuts from central banks, including the Federal Reserve and the Bank of Canada, might lend some support to market sentiment.

At present, market consensus points to a 95% probability of a 25 basis points rate cut from the Federal Reserve next month, following a significant 50 basis points reduction in September.

From the Canadian economic perspective, data on housing starts will be released at 8:15 AM ET, while manufacturing sales and new motor vehicle sales figures for August will be available at 8:30 AM ET.

On the corporate front, focus will be on shares of Lithium Americas Corp (LAC.TO) following the company's announcement of a joint venture with General Motors Holdings aimed at developing the Thacker Pass project in Nevada.

Corus Entertainment (CJR.B.TO) disclosed late Tuesday that discussions continue with RBC Capital Markets, TD Securities, and other financial institutions regarding an amendment to its credit agreement, aimed at strengthening its balance sheet and managing liabilities.

Tuesday saw a downturn in the Canadian market, primarily due to significant sell-offs in the energy sector as oil prices fell. This decline was fueled by reports that Israel does not intend to target Iranian oil and nuclear facilities, alleviating supply disruption fears. However, the downside was somewhat mitigated by soft Canadian inflation data.

The S&P/TSX Composite Index closed down by 32.09 points or 0.13% at 24,439.08. The index, which dropped to 24,357.87, saw a recovery to 24,479.22 before pulling back.

In Asia, stocks concluded Wednesday on a weaker note, influenced by ongoing Middle East tensions, shifting U.S. rate cut expectations, and reports suggesting the U.S. may impose a cap on export licenses for AI chips to certain nations.

The regional decline was led by semiconductor stocks after Europe's leading tech firm ASML, which counts TSMC, Samsung, and SK Hynix among its clients, issued a warning about weak demand in the semiconductor sector.

In Europe, stocks are generally lower as investors digest a series of disappointing earnings releases while awaiting guidance from the European Central Bank's policy meeting on Thursday.

Markets are currently anticipating two additional rate cuts from the euro area's central bank this year, driven by a subdued growth forecast and declining inflation.

In commodity markets, West Texas Intermediate crude futures are trading down $0.47 or 0.67% at $70.11 a barrel. Meanwhile, gold futures are advancing by $16.90 or 0.63% to $2,695.80 per ounce, and silver futures have increased by $0.314 or 0.99% to $32.070 per ounce.