Bay Street Likely To Open With Slightly Positive Bias

Canadian shares are likely to open with a slightly positive bias Friday morning, tracking firm European markets, and higher bullion prices.

Uncertainty about the outlook for interest rates, and worries about economic slowdown may render the mood a bit cautious. Energy stocks may find the going a bit tough due to weak crude oil prices.

On the economic front, preliminary data on Canadian wholesale sales for the month of December is due at 8:30 AM ET.

The Canadian market ended modestly higher on Thursday, lifted by gains in energy, materials and utilities sectors.

The benchmark S&P/TSX Composite Index ended with a gain of 75.76 points or 0.36% at 21,101.54.

Asian markets ended on a mixed note on Friday as the euphoria generated by China’s surprise announcement of a 50-basis point cut in the reserve requirement for banks faded. Fears of a monetary policy pivot by the Bank of Japan hurt Nikkei.

European stocks are up firmly in positive territory, with the French market moving up sharply thanks to data showing a jump in consumer confidence in January. Signs of cooling inflation in the euro area contribute as well to the firm undertone in the markets.

In commodities, West Texas Intermediate Crude oil futures are down $0.80 or 1.02% at $76.56 a barrel.

Gold futures are up $4.70 or 0.23% at $2,022.50 an ounce, while Silver futures are gaining $0.103 or 0.4% at $23.030 an ounce.

For comments and feedback contact: editorial@rttnews.com

Business News