Bay Street Likely To Open Higher

(RTTNews) - Canadian stocks are likely to open on a positive note on Wednesday amid rising possibility of the Federal Reserve lowering interest rate by 25 basis points in December.

Encouraging progress in Ukraine peace talks is also expected to aid sentiment. Some caution is likely at higher levels as big name Canadian banks are scheduled to report their quarterly earnings next week.

The Canadian market closed on a strong note on Tuesday as expectations of a U.S. Federal Reserve rate cut gained more traction after the latest batch of economic data.

The benchmark S&P/TSX Composite Index settled with a gain of 296.30 points or 0.97% at 30,900.65, with consumer staples stocks turning in a fine performance.

CME Group's FedWatch Tool is currently indicating investors are betting at an 82.7% chance (up from around 50% a week before) of a 25-basis-point rate cut by the Fed at its December 9-10 meeting.

Asian stocks rose for a third day running on Wednesday as weak U.S. economic data bolstered investor hopes for a Federal Reserve interest rate cut next month.

The major European markets are up in positive territory today, extending recent gains, amid rising hopes of an interest rate cut by the Federal Reserve in December.

In commodities trading, West Texas Intermediate Crude oil futures are down $0.10 or 0.17% at $57.85 a barrel.

Gold futures are gaining $54.50 or 1.32% at $4,194.50 an ounce, while Silver futures are up $1.630 or 3.2% at $52.595 an ounce.