Bay Street May Cheer Solid Bank Earnings -- Canadian Commentary

(RTTNews) - Early signals are mixed for Canadian stocks Wednesday morning, as oil prices slumped on signs of rising U.S. inventories.

However, upbeat earnings from another of Canada's biggest banks may keep investors in a decent mood.

Royal Bank of Canada (RY.TO) revealed earnings for its third quarter that increased 7 percent from last year. RBC also hiked its dividend.

ProMetic (PLI.TO) has agreed to acquire Telesta Therapeutics (TST.TO) in an all share transaction.

American International Group Inc. (AIG) is in early discussions to sell insurance operations connected with Lloyd's of London to Canada's biggest pension fund, the Wall Street Journal reported citing people familiar with the matter.

Energy stocks may come under pressure after a big drop in crude oil prices.

WTI light sweet crude oil was down $1 at $47 a barrel.

Morgan Stanley says an agreement between members of the Organization of the Petroleum Exporting Countries to curb supplies remains "highly unlikely."

Yesterday, the S&P/TSX Composite Index was up 16 points to 14,764.77.