FX.co ★ Bay Street May Open Higher; Inflation Data In Focus

High bullion prices suggest a promising start for Canadian stocks this Tuesday. However, the release of Canadian inflation data ahead of the opening bell is expected to influence the market's trajectory.

The Canadian inflation report for June is scheduled for release at 8:30 AM ET. In May, Canada's annual inflation rate rose to 2.9%, recovering from a three-year low of 2.7% in April. On a month-to-month basis, the consumer price index increased by 0.6% in May, following a 0.5% rise in April.

Furthermore, Canada's core inflation rate accelerated to 1.8% annually in May, up from 1.6% in April. On a monthly basis, core inflation saw a 0.6% increase in May, following a 0.2% rise in April.

Meanwhile, housing starts in Canada dropped to 241,700 units in June from 264,900 units in May, according to a report by the Canada Mortgage & Housing Corporation.

In other news, Barrick Gold Corporation (ABX.TO) reported the production of 948 thousand ounces of gold in the second quarter, a decrease from the 1.009 million ounces produced in the same quarter the previous year. Additionally, Barrick Gold produced 43 thousand tonnes and sold 42 thousand tonnes of copper in the second quarter, compared to 107 million pounds and 101 million pounds, respectively, in the same quarter last year. Looking forward, the company remains optimistic about meeting its full-year gold and copper production targets.

The Canadian market achieved a new all-time high on Monday, extending its gains for the fourth consecutive session, largely driven by rises in the energy sector. Market sentiment remained buoyed by expectations of an interest rate cut by the Federal Reserve in September.

The S&P/TSX Composite Index reached a new intra-day high, climbing to 22,818.42, before closing with a gain of 78.16 points or 0.34%, settling at 22,751.68—a record closing high.

Asian markets concluded Tuesday with mixed results, despite overnight strength on Wall Street. Investors are weighing the likelihood of a September rate cut following remarks by Fed Chair Jerome Powell, highlighting "more progress" based on three inflation readings from the second quarter of this year.

Amid increasing prospects of a Trump presidency, markets are also contending with the implications of the "Trump Trade," which encompasses deregulation, tax cuts, and augmented fiscal spending.

European stocks are currently in negative territory, driven by concerns regarding the economic growth outlook for the eurozone. Analysts have warned that the region's GDP could suffer if Donald Trump wins the presidential election in November. Additionally, weak German investor sentiment data is adding downward pressure.

In the commodities market, West Texas Intermediate crude oil futures have declined by $1.52 or 1.85%, currently priced at $80.39 per barrel. Gold futures are up $15.30 or 0.63%, trading at $2,444.20 per ounce, while silver futures have increased by $0.119 or 0.38%, standing at $31.055 per ounce.