Bay Street Seen Opening On Slightly Negative Note

(RTTNews) - Canadian shares are likely to open on a negative note on Wednesday, tracking weak crude oil and precious metals prices. The mood is likely to remain cautious amid concerns over geopolitical tensions.

The Ivey PMI reading for December 2025, due out at 10 AM ET., may provide some direction.

Canada's Ivey Purchasing Managers Index tumbled to 48.4 in November 2025 from 52.4 in October, and way below expectations of 53.6. The reading marks the first contraction after five consecutive months of expanding economic activity.

The Canadian market closed on a firm note on Tuesday, riding on gains in metal stocks thanks to increasing safe-haven demand for gold amid ongoing geopolitical tensions.

The benchmark S&P/TSX Composite Index settled at 32,407.02, up by 187.07 points or 0.58%.

Asian stocks ended mixed on Wednesday as tensions between China and Japan escalated, and weak U.S. data spurred hopes for more rate cuts.

Federal Reserve Governor Stephen Miran has called for aggressive rate cuts exceeding 100 basis points in 2026, arguing that current tight monetary policy is dragging down the world's largest economy.

Amid rising tensions over Taiwan, China's commerce ministry said that exports of products with potential military use to Japan would be banned immediately. Japan has lodged a strong protest against Beijing's trading curbs on dual-use goods that threaten to impact more than 40% of Chinese exports to Japan.

The export control list features more than 800 items, ranging from chemicals, electronics and sensors to equipment and technologies used in shipping and aerospace.

European stocks are showing some weakness, although the German market outperforms, with its benchmark DAX gaining more than 0.5%. Investors are digesting a slew of regional economic data and await crucial reports from the U.S. this week.

In commodities trading, West Texas Intermediate Crude oil futures are down $0.10 or 0.17% at $57.03 a barrel.

Gold futures are down $33.10 or 0.74% at $4,463.00 an ounce, while Silver futures are lower by $2.139 or 2.64% at $78.900 an ounce.