Bay Street Seen Opening On Weak Note

(RTTNews) - Lower commodity prices and weak European stocks point to a negative start for the Canadian market Tuesday morning.

Data on Canadian and U.S. manufacturing activity for the month of July are likely to provide some cues about the outlook for interest rates.

Manufacturing activity in Canada slowed down in June, according to a report by Markit Economics. The S&P Global Canada Manufacturing PMI fell to 48.8 in June of 2023 from 49 in the previous month, marking the third month of contraction since the start of the year

George Weston Limited (WN.TO) reported adjusted net earnings of $377 million for the second quarter, an increase of $49 million, or 14.9%, compared to adjusted net earnings in the year-ago quarter.

The Canadian market ended on a firm note on Monday, led by gains in materials and technology stocks.

The benchmark S&P/TSX Composite Index, which climbed to 20,677.25 in early trades, ended with a gain of 107.27 points or 0.52% at 20,626.64, the highest close in three months.

Asian stocks turned in a mixed performance on Tuesday as China disappointed and investors looked ahead to a slew of U.S. economic data due this week for additional clues on the rate outlook.

Chinese stocks ended weak after a private survey showed factory activity in the country contracted in July, missing expectations for a small expansion.

European stocks are down in negative territory, weighed down by weak manufacturing PMI data from Asia and Europe.

The HCOB Eurozone Manufacturing PMI fell to 42.7 in July from 43.4 in the previous month, marking the lowest in three years.

U.K. factory output fell at the fastest pace in seven months in July, hit by higher interest rates while British retail sales fell in July at the fastest rate since April 2022, separate reports showed.

In commodities, West Texas Intermediate Crude oil futures are down $0.21 or 0.27% at $81.59 a barrel.

Gold futures are down $16.40 ,992.80 or 0.82% at $1,992.80 an ounce, while Silver futures are down $0.362 or 1.45% at $24.610 an ounce.