Bay Street Set To Open Higher On Rising Commodity Prices

(RTTNews) - Canadian shares may open higher on Friday, tracking firm commodity prices, and stronger than expected earnings updates from U.S. lenders JP Morgan Chase and Wells Fargo.

The Canadian market ended weak on Thursday, snapping a five-day winning streak, after data showing a slightly bigger than increase in U.S. consumer prices in the month of September raised concerns the Federal Reserve will hold interest rates higher for longer.

Utilities, consumer discretionary, materials and technology stocks were among the major losers.

The benchmark S&P/TSX Composite Index, which tumbled to 19,410.51, ended down 163.60 points or 0.83% at 19,500.24.

Asian stocks declined on Friday as stronger-than-expected U.S. consumer inflation data revived fears about further interest rate rises.

Mixed China data, lingering concerns about conflict in the Middle East and caution ahead of earnings from JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. due later in the day also weighed on markets.

Gold edged up and was on course for its best week in seven months as the dollar and Treasury yields fell slightly after climbing overnight.

Oil prices jumped around 2 percent after the U.S. Treasury Department said that it has imposed its first set of sanctions on two companies that shipped Russian oil in violation of a multinational price cap.

European stocks are down firmly in negative territory Friday afternoon, weighed down by concerns about interest rates after the latest U.S. inflation data, and comments from Bank of England Governor Andrew Bailey that future rate decisions by the central bank would continue to be tight.

In commodities, West Texas Intermediate Crude oil futures are up $3.50 or 4.2% at $86.41 a barrel.

Gold futures are gaining $26.00 or 1.4% at $1,909.00 an ounce, while Silver futures are up $0.496 or 2.26% at $22.455 an ounce.