Bay Street Headed For Weak Start

(RTTNews) - Canadian shares are likely to open with a negative gap on Thursday, tracking weak commodity prices and European markets, amid concerns about growth and tighter policy stance by global central banks.

Sentiment is also likely to be hurt on reports China has once again imposed lockdown in several cities across the country and also ramped up COVID restrictions to fight a surge in fresh cases.

Canadian Natural Resources Ltd. (CNQ.TO) reported third-quarter net earnings of C$2.81 billion, up from net earnings of C$2.20 billion in the year-ago quarter. Earnings per share were C$2.49, up from C$1.86 last year.

BCE Inc. (BCE.TO) reported third-quarter net earnings of $771 million, down 5.2% from net earnings of $715 million a year ago.

On the economic front, Canada's trade data is due at 8:30 AM ET.

The Canadian market ended notably lower on Wednesday, weighed down by losses in materials, healthcare, technology and consumer discretionary sections.

The U.S. Federal Reserve's decision to raise interest rate by another 75 basis points, and Fed Chair Jerome Powell's hawkish comments in his post-meeting press conference weighed on the market. Powell said, "It is very premature to be thinking about pausing."

The benchmark S&P/TSX Composite Index ended down 240.70 points or 1.23% at 19,277.01, the day's low. The index climbed to a high of 19,669.36 around mid afternoon, before losing ground.

Asian stocks followed Wall Street lower on Thursday, as investors reacted to hawkish comments from Fed Chair Jerome Powell on the outlook for inflation and rates, and China's affirmation that a zero-tolerance approach continues to be the overall strategy in tackling COVID-19. Weak services sector data from China weighed as well.

European stocks are notably lower, weighed down by a sharp 75-basis point interest rate hike by the Bank of England, and the Fed's comments that it was "very premature" to think about pausing the tightening cycle.

In commodities trading, West Texas Intermediate Crude oil futures for December are down $0.95 or 1.05% at $89.05 a barrel.

Gold futures are down $24.00 or 1.45% at $1,626.00 an ounce, while Silver futures are lower by $0.574 or 2.93% at $19.020 an ounce.