Bay Street Likely To Open On Weak Note

(RTTNews) - Canadian shares look headed for a weak start on Thursday, tracking weakness in European markets and lower crude oil prices.

Worries about inflation and interest rates may weigh on stocks. Investors will be looking ahead to U.S. jobs data, due on Friday, for clues about Fed's interest rate stance.

In company news, Suncor Energy Inc. (SU.TO) announced Thursday that it has reached an agreement to sell its wind and solar assets to Canadian Utilities Limited, an ATCO company, for C$730 million.

On the economic front, the Ivey PMI reading for September is due at 10 AM ET. The Ivey Purchasing Managers Index in Canada rose to 60.9 in August of 2022 from a seven-month low of 49.6 in the previous month, pointing to a renewed expansion in economic activity.

The Canadian market ended notably lower on Wednesday after spending the entire trading session in negative territory.

Concerns about inflation and economic slowdown weighed on sentiment. The latest batch of economic data from the U.S. added to worries the Fed will maintain its strategy of aggressively raising interest rates this year.

Data from payroll processor ADP showed private sector employment in the U.S. increased by slightly more than expected in the month of September.

The benchmark S&P/TSX Composite Index, which tumbled to around mid morning, ended the session with a loss of 135.90 points or 0.7% at 19,235.09.

Asian stocks ended mixed on Thursday as solid private payrolls and services sector data from the United States dampened hopes for a policy pivot from the U.S. Federal Reserve.

European stocks are drifting lower amid concerns about inflation and possible recession.

German factory orders decreased 2.4% month-on-month in August, Destatis reported - reversing a revised 1.9% rise in July.

Fitch Ratings has cut the U.K.'s credit outlook from stable to negative, saying the large and unfunded fiscal package announced as part of the new government's growth plan could lead to a significant increase in fiscal deficits over the medium term.

In commodities trading, West Texas Intermediate Crude oil futures for November are down $0.44 or 0.5% at $87.32 a barrel.

Gold futures are up $2.10 or 0.12% at $1,722.90 an ounce, while Silver futures are gaining $0.101 or 0.49% at $20.645 an ounce.