Bay Street Seen Opening On Weak Note
(RTTNews) - Weak European stocks, lower crude oil and bullion prices, and concerns that the Federal Reserve might reducer interest rate only once this year, may weigh on Canadian shares early on Thursday.
European Central Bank Governing Council member Joachim Nagel's warning that consumer price growth in the euro zone is proving stubborn and that he and his colleagues won't simply lower borrowing costs automatically, is also likely to weight on sentiment.
The Canadian market closed on a positive note on Wednesday as soft U.S. inflation data helped ease concerns about the outlook for interest rates.
The benchmark S&P/TSX Composite Index ended with a gain of 74.21 points or 0.34% at 21,961.55. The index climbed to a high of 22,127.72 in early trades.
Asian stocks ended broadly higher on Thursday on expecctations the soft U.S. inflation data will prompt the Fed to cut its interest rate in September.
However, Chinese and Japanese markets ended lower after Europe threatened to impose provisional duties on imports of Chinese electric vehicles in July.
European stocks are notably lower amid concerns the Fed will likely cut interest rate only once this year, in contrast to earlier expectations of a two or three rate cuts in the year.
In commodities, West Texas Intermediate Crude oil futures are down $0.76 or 0.97% at $77.74 a barrel.
Gold futures are down $32.40 or 1.38% at $2,322.40 an ounce, while Silver futures are lower by $1.092 or 3.61% at $29.175 an ounce.
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