Bay Street Seen Opening On Weak Note

(RTTNews) - Weak commodity prices and worries about inflation and interest rate hikes are likely to weigh on Canadian shares Friday morning.

Data on Canadian retail sales for the month of June is due at 8:30 AM ET. Retail sales in Canada likely rose by 0.3% month-over-month in June of 2022, preliminary estimates showed.

On an annual basis, retail trade jumped by 14.1% in May, advancing from an upwardly revised 9.5% increase in April.

The Canadian market ended moderately higher on Thursday thanks to strong gains in the energy sector after crude oil prices surged on concerns about supply outlook.

Materials stocks found some support, and healthcare stocks drifted lower, while shares from the rest of the sectors turned in a mixed performance.

The benchmark S&P/TSX Composite Index ended with a gain of 83.93 points or 0.42% at 20,265.37, nearly 60 points off the day's high of 20,323.57.

Asian stocks ended mixed on Friday as Federal Reserve officials continued to talk up the need for further interest rate hikes ahead of the Fed's annual Jackson Hole economic symposium in Wyoming next week.

St. Louis Fed president James Bullard said he expects a third straight 75 basis point interest rate hike in September, while San Francisco Fed colleague Mary Daly said that raising rates by 50 or 75 basis points next month would be "reasonable."

Kansas City Fed president Esther George argued that the drop in inflation registered in July was not evidence the underlying problem was fixed.

European stocks are broadly lower following U.S. central bankers offering divergent signals over the size of the next interest-rate hike.

Inflation and recession worries are back in focus after data showed Germany's producer price inflation accelerated unexpectedly to a new record high in July, primarily driven by higher energy costs.

In commodities trading, West Texas Intermediate Crude oil futures for September are down $1.65 or 1.82% at $88.85 a barrel.

Gold futures are down $6.50 or 0.38% at $1,765.10 an ounce, while Silver futures are lower by $0.299 or 1.55% at $19.165 an ounce.