Bay Street Likely To Open On Weak Note

(RTTNews) - Canadian shares are likely to open lower Wednesday morning, weighed down by weak crude oil prices and weakness in European markets.

The focus will be on U.S. debt ceiling bill. The House of Representatives Rules Committee is set to consider the bill today afternoon, after which the House of Representatives and Senate will vote.

Although U.S. President Joe Biden and House Speaker Kevin McCarthy hope they will get enough votes for the deal to pass, a section of the market is concerned about the outcome of the vote.

Data on Canada's GDP for the first-quarter is due at 8:30 AM ET. The Canadian economy stalled in the fourth quarter of 2022, after seeing five consecutive quarters of growth.

National Bank of Canada (NA.TO) reported second-quarter net income of C$847 million or C$2.38 per share, compared to net income of C$889 million or C$2.53 per share in the prior-year quarter.

CAE Inc (CAE.TO) announced Tuesday evening that CAE Defense & Security has been awarded a contract worth US$455 million from General Dynamics Information Technology to support Flight School Training Support Services at Fort Novosel (formerly Fort Rucker ), Alabama.

On Tuesday, the Canadian market ended notably lower on Tuesday due to widespread selling amid concerns about economic slowdown. The benchmark S&P/TSX Composite Index ended down 228.25 points or 1.14% at 19,739.70. The index touched a low of 19,708.37 around mid afternoon.

Asian stocks slumped on Wednesday as China manufacturing data disappointed and caution crept in ahead of a vote in Congress to raise the U.S. debt ceiling. Worsening ties between Washington and Beijing weighed as well.

Data showed manufacturing activity in China shrank faster than expected in May on weakening demand, raising uncertainty over post-Covid recovery. Meanwhile, service sector activity expanded at the slowest pace in four months. The official manufacturing PMI dropped to a five-month low of 48.8 from 49.2 in April while the non-manufacturing PMI fell to 54.5 from 56.4.

European stocks are down in negative territory, weighed down by lower commodity prices following disappointing economic data from China.

In commodities, West Texas Intermediate Crude oil futures are down $2.04 or 2.94% at $67.42 a barrel.

Gold futures are up marginally at $1,978.90 an ounce, while Silver futures are gaining $0.171 or 0.74% at $23.410 an ounce.