Bay Street Headed For Weak Start

(RTTNews) - Canadian shares are likely to open on a negative note Friday morning, tracking weak European stocks and lower crude oil prices. Concerns about tariffs may weigh down on sentiment. Trading volumes are likely to remain thin as the U.S. market is closed for Independence Day holiday.

U.S. President Donald Trump announced that his administration will start issuing formal letters to several major economies outlining new U.S. export tariff rates as early as Friday.

Trump said the U.S. will forgo lengthy negotiations with over 170 countries and instead unilaterally impose flat tariff rates ranging between 20% and 30%.

Data on Canadian manufacturing and services sector activity, due at 9:30 AM ET, may provide some direction to the market.

On Thursday, Canadian stocks showed a strong move to the upside during trading to set new record highs.

The benchmark S&P/TSX Composite Index climbed to an intraday high of 27,039.30, and ended the session slightly below that level at 27,034.26, gaining 164.60 points or 0.61%.

Asian stocks ended mixed on Friday as U.S. President Donald Trump's tariff threats ahead of the July 9 deadline offset robust U.S. jobs data.

Traders also reacted to the passage of Trump's tax-cut and spending bill, which is set to massively widen the U.S.' budget deficit and leave an added 12 million Americans without health insurance.

The 218-214 vote in the House Thursday sends the legislation to Trump, who expects to sign the bill on Friday at a 4 p.m. ceremony at the White House.

The dollar retraced earlier gains after Trump during late Thursday evening said that his administration will start sending letters to countries starting Friday to identify the tariff rates they would face on imports to the United States.

The major European markets are down in negative territory amid renewed concerns about Trump administration's tariff moves, following the U.S. President's threat to impose reciprocal tariffs from early August.

In commodities trading, West Texas Intermediate crude oil futures are down $0.43 or 0.64% at $66.57 a barrel.

Gold futures are up $3.50 or 0.1% at $3346.40 an ounce, while Silver futures are gaining $0.051 or 0.13% at $37.135 an ounce.