Bay Street May Open With Slightly Positive Bias

(RTTNews) - Canadian stocks may open with slightly positive bias on Thursday with investors reacting to bank earnings and tracking commodity prices. Worries about geopolitical tensions and uncertainty about Fed interest rates may weigh on sentiment and limit market's upside.

Royal Bank of Canada reported third-quarter net income of C$5.879 billion, up 11% from C$5.290 billion a year ago. Earnings per share increased 13% to C$4.23 from C$3.75 in the prior year period.

The Toronto Dominion Bank reported net income available to common shareholders of C$4.521 billion, or C$2.74 per share, for the third quarter, up from C$3.248 billion, or C$1.89 per share, a year earlier.

Enbridge Inc. announced that it has agreed to form a joint venture with KKR, in collaboration with Apollo, to fund the Aspen Point and Sunrise Expansion Programs of its Westcoast natural gas pipeline system in British Columbia. Under the agreement, KKR and Apollo will invest approximately C$2.700 billion in the expansions, including C$0.700 billion in cash to Enbridge at closing, in exchange for an indirect, cumulative 29% interest in the aggregate Westcoast system once the Sunrise expansion enters service.

The Canadian market ended weak on Wednesday, marginally offsetting three sessions of gains as investors assessed the possible impacts on the economy after the U.S. and Canada slapped tariffs and counter-tariffs on each other.

The benchmark S&P/TSX Composite Index settled at 36,813.65, down by 143.98 points or 0.39%, despite attempting a recovery.

Asian stocks turned in a mixed performance on Thursday as Chinese industrial profits data disappointed and firmer-than-expected U.S. inflation data kept expectations alive for a Fed rate hike by year-end.

The U.S. dollar moved in a narrow range ahead of Kevin Warsh's first Jackson Hole speech as Fed Chair on Friday that could provide further clues on the path for U.S interest rates.

European stocks are broadly lower today with investors largely cautious amid concerns about geopolitical tensions and uncertainty about Fed interest rates.

In commodities trading, West Texas Intermediate Crude oil futures are up $0.18 or 0.2% at $82.41 a barrel.

Gold futures are down $4.90 or 0.1% at $4,648.40 an ounce, while Silver futures are up $0.249 or 0.37% at $68.275 an ounce.

Data from Statistics Canada showed Canada's current account balance swung to a surplus of C$8.8 billion in the second quarter of 2026 from a deficit of C$8.3 billion in the prior quarter, missing forecasts of a C$2 billion shortfall.

A separate data from Statistics Canada showed wages in Canada increased 3.4% in June over the same month in the previous year.