Bay Street May Open On Positive Note; U.S. Inflation Data, Fed Policy In Focus

(RTTNews) - Although firm European stocks and higher commodity prices point to a positive start on Bay Street on Wednesday, U.S. consumer price inflation data, due before the opening bell, and the Federal Reserve's monetary policy announcement later in the day, will set the mood for the market.

Inflation data from the Labor Department is due at 8:30 AM ET. The Fed's policy announcement is due at 2 PM ET.

Economists expect U.S. consumer prices to inch up by 0.1% in May after climbing by 0.3% in April, while core consumer prices, which exclude food and energy prices, are expected to increase by 0.3% for the second straight month.

The annual rate of growth by consumer prices is expected to come in unchanged at 3.4%, but the annual rate of core consumer price growth is expected to slow to 3.5% in May from 3.6% in April.

While the Fed is widely expected to leave interest rates unchanged, traders are likely to pay close attention to the accompanying statement as well as officials' latest projections for the economy and interest rates.

In Canadian earnings news, Dollarama Inc (DOL.TO) reported net earnings of $215.8 million, or $0.77 per diluted common share, for the first quarter of 2025, up 20% compared to $179.9 million, or $0 .63 per diluted common share, in the first quarter of fiscal 2024.

The Canadian market ended at a near 6-week low on Tuesday, weighed down by losses in materials and financials stocks.

The benchmark S&P/TSX Composite Index ended down by 182.42 points or 0.83% at 21,887.34, about 45 points off the day's low of 21,842.90.

Asian stocks drifted lower on Wednesday as investors awaited key U.S. inflation data as well as a Federal Reserve policy decision later in the day for additional clues on the outlook for interest rates.

Producer and consumer price data coming out of China attracted investor attention early in the session. China's consumer inflation held steady in May while factory gate inflation eased, official data revealed.

Investors also weighed reports suggesting that the Biden administration is considering further restrictions on China's access to chip technology used for artificial intelligence.

European shares are up in positive territory in cautious trade on Wednesday with investors awaiting U.S. inflation data as well as the Federal Reserve's monetary policy decision, for additional clues on the outlook for interest rates.

In commodities, West Texas Intermediate Crude oil futures are up $0.90 or 1.15% at $78.80 a barrel.

Gold futures are up $3.40 or 0.15% at $2,330.00 an ounce, while Silver futures are gaining $0.294 or 1.01% at $29.525 an ounce.