Bay Street Likely To Open Slightly Higher; Retail Sales Data In Focus

(RTTNews) - Canadian shares may open with a positive bias Friday morning, tracking higher gold prices and somewhat steady European stocks. Still, data on Canadian retail sales for the month of November is likely to make a significant impact on sentiment early on in the session.

According to preliminary estimates, retail sales in Canada are expected to have stagnated in November. In October, retail sales rose by 0.7% month-over-month, revised lower from the preliminary estimates of a 0.8% rise and accelerating slightly from the downwardly revised 0.5% gain in September. Retail sales increased 2.18% in October over the same month in the previous year.

The Canadian market shrugged off a mid session setback and ended modestly higher on Thursday, lifted by gains in consumer staples and industrials sectors. Communications stocks moved up as well.

Uncertainty about the outlook for Federal Reserve's interest-rate trajectory rendered the mood a bit cautious. Also, investors looked ahead to Canadian retail sales data, due on Friday, for clues about the Bank of Canada's policy move.

The benchmark S&P/TSX Composite Index, which dropped to 20,659.03 around mid afternoon, recovered subsequently to settle at 20,756.73 with a gain of 61.71 points or 0.3%.

Asian stocks ended mixed on Friday, even as softening Fed expectations and bullish forecasts on AI demand lifted technology stocks.

European stocks are modestly higher. European Central Bank President Christine Lagarde said at the World Economic Forum today that inflation is coming down in the Eurozone and worldwide, and that there are signs the job market is loosening.

Lagarde however refrained from commenting on monetary policy during her commentary on the economic outlook.

In commodities, West Texas Intermediate Crude oil futures are down $0.06 or 0.08% at $74.02 a barrel.

Gold futures are gaining $13.20 or 0.65% at $2,034.80 an ounce, while Silver futures are up $0.128 or 0.56% at $22.935 an ounce.