Bay Street Likely To Open On Negative Note

(RTTNews) - Canadian shares are likely to open lower on Thursday, tracking weak global cues amid rising concerns about China's economic recovery and prospects of further policy tightening by the Federal Reserve.

Canada's trade data for the month of May is due at 8:30 AM ET. Canada posted a trade surplus of C$ 1.94 billion in April of 2023. Exports jumped by 2.5% to C$ 64.8 billion in April, while imports fell by 0.2% to C$ 62.9 billion.

At 10 AM ET, the Richard Ivey School of Business is scheduled to release the reading of the Canadian economic activity for the month of June. The Ivey Purchasing Managers Index in Canada dropped to 53.5 in May 2023, from 56.8 in the prior month and well below market forecasts of 57.2.

After six successive days of gains, the Canadian market turned weak on Wednesday with investors choosing to take some profits and largely refraining from creating fresh positions amid rising concerns about growth due to higher interest rates.

The benchmark S&P/TSX Composite Index ended with a loss of 100.98 points or 0.5% at 20,103.89.

Asian stocks ended lower on Thursday, with hawkish Fed meeting minutes and lingering U.S.-China tensions keeping investors nervous.

The dollar consolidated gains and Treasury yields rose after the Federal Reserve's June meeting minutes showed policymakers anticipate two more interest- rate hikes in 2023 to bring inflation back down.

European stocks are sharply lower amid waning risk appetite due to rising concerns about China's economic recovery and expectations for a more hawkish Federal Reserve.

In commodities, West Texas Intermediate Crude oil futures are up $0.31 or 0.43% at $72.10 a barrel.

Gold futures are up $4.50 or 0.23% at $1,931.60 an ounce, while Silver futures are up marginally at $23.410 an ounce.