Bay Street Seen Opening Higher; U.S. Inflation Data In Focus

(RTTNews) - Higher Canadian and U.S. futures, and firm crude oil prices point to a positive start for the Canadian market on Tuesday.

The focus will be on U.S. inflation data for the month of August. The data is due at 8:30 AM ET.

The data is expected to show a continued slowdown in the annual rate of consumer price growth to 8.1% in August from 8.5% in July.

The annual rate of growth by core consumer prices, which exclude food and energy prices, is expected to tick up to 6% in August from 5.9% in July

Roots Corporation Ltd. (ROOT.TO) reported second-quarter net loss of $3.2 million compared to net loss $1.2 million in the second quarter of the previous year. Sales increased 22.9% year-over-year to $47.8 million in the second quarter, the company said.

Canadian stocks ended on a bright note on Monday, extending gains to a fourth straight session, as optimism about a slowdown in U.S. inflation triggered some strong buying in the market.

Firm crude oil prices contributed as well to market's fairly impressive uptick.

The benchmark S&P/TSX Composite Index ended with a gain of 213.89 points or 1.08% at 19,987.23. The index climbed to a high of 20,032.60, rising about 20,000 mark for the first time in about two weeks.

Asian stocks rose broadly on Tuesday as focus shifted to U.S. inflation data due later in the day that could show some signs of softening in August.

The Federal Reserve, however, is expected to deliver another 75-basis-point interest rate hike next week after two such moves in June and July.

European stocks are up in positive territory, with M&A talk and hopes for a softer U.S. inflation reading boosting underlying sentiment.

In commodities trading, West Texas Intermediate Crude oil futures are up $1.40 or 1.6% at $89.18 a barrel.

Gold futures are up marginally at $1,741.20 an ounce, while Silver futures are down slightly at $19.845 an ounce.