Bay Street Likely To Open With Positive Bias

(RTTNews) - Higher Canadian and U.S. futures, firm crude oil prices and data showing a smaller than expected increase in U.S. consumer price inflation in the month of September suggest a positive start for the Canadian market on Friday.

Crude oil prices have moved higher on supply jitters following fresh U.S. sanctions on major Russian producers Rosneft and Lukoil.

Data from the Labor Department showed the U.S. consumer price index rose by 0.3% in September after climbing by 0.4% in August. Economists had expected consumer prices to rise by another 0.4%.

The report also said the annual rate of growth by consumer prices ticked up to 3% in September from 2.9% in August, although that was slower than the 3.1% jump expected by economists.

In Canadian economic news, the house price index in Canada decreased by 0.2% in September from -0.3% in August of, according to data released by Statistics Canada.

Meanwhile, U.S. President Donald Trump has said that he terminated trade talks with Canada over an advertisement by the Canadian provincial government of Ontario, quoting former US President Ronald Reagan. A minute-long advert released last week featured an audio clip from a speech by Reagan in 1987 criticizing implementation of tariffs on foreign goods. The Canadian market ended on a strong note on Thursday as increases in gold and crude oil prices lifted energy and mining stocks even as investors assessed reports about the upcoming budget.

The benchmark S&P/TSX Composite Index traded firmly positive throughout the session before finally closing at 30,186.28, up by 203.30 points, or 0.68%.

Asian stocks closed broadly higher on Friday ahead of pivotal talks between the United States and China in Malaysia to avert trade war escalation.

Beijing and Washington "can totally find ways to resolve each other's concerns," the Chinese commerce minister said after the White House confirmed plans for President Donald Trump to meet with Chinese leader Xi Jinping next week.

The major European markets are subdued today with investors digesting regional economic data and largely making cautious moves.

In commodities, West Texas Intermediate crude oil futures are up $0.34 or 0.55% at $62.13 a barrel.

Gold futures are down $72.50 or 1.75% at $4,073.10 an ounce, while Silver futures are down $0.944 or 1.94% at $47.760 an ounce.