Bay Street May Open On Positive Note

(RTTNews) - Canadian shares look headed for a higher start Friday morning, thanks to positive global cues amid easing trade tensions after the U.S. struck a deal with China to expedite rate earth shipments.

The deal marks a significant step towards resolving the ongoing trade war between the world's two largest economies.

Beijing said Washington would lift "restrictive measures" while Beijing would "review and approve" items under export controls.

On the Canadian economic front, data from Statistics Canada showed the nation's GDP edged down 0.1% in April.

In U.S. data, a report from the Commerce Department said the personal consumption expenditures (PCE) price index inched up by 0.1% in May, matching the uptick seen in April as well as economist estimates.

The annual rate of growth by the PCE price index accelerated to 2.3% in May from 2.2% in April, which also matched expectations.

Meanwhile, the core PCE price index, which excludes food and energy prices, rose by 0.2% in May after inching up by 0.1% in April. Economists had expected another 0.1% uptick. The annual rate of growth by the core PCE price index accelerated to 2.7% in May from an upwardly revised 2.6% in April.

Canadian stocks climbed higher Thursday as the ongoing truce between Israel and Iran pushed the market up, with mining stocks taking the lead.

The benchmark S&P/TSX Composite Index settled at 26,751.95, up by 185.63 or about 0.7%.

Asian stocks ended mixed on Friday despite U.S. President Donald Trump announcing a trade deal with China on rare earths and hinting at a major upcoming deal with India.

The ceasefire between Iran and Israel continued to hold and weak U.S. data fueled rate cut hopes, helping limit regional losses.

The major European markets are notably higher on easing U.S.-China trade tensions, and the ceasefire between Iran and Israel.

In commodities trading, West Texas Intermediate Crude oil futures are up $0.35 or 0.54% at $65.59 a barrel.

Gold futures are down $63.50 or 1.9% at $3,284.50 an ounce, while Silver futures are lower by $0.779 or 2.1% at $36.145 an ounce.