Lower Open Likely On Bay Street
(RTTNews) - Canadian stocks look headed for a weak start on Thursday amid concerns about inflation and interest rates following oil's continued move up north.
Selling is likely in the materials sector as precious metals prices dropped amid rising prospects of interest rate hikes by major central banks. The European Central Bank today raised its interest rate by 25 basis points.
The Canadian market ended lower on Wednesday, losing for a fourth straight session, as the U.S. administration escalated the trade war with Canada by modifying its tariffs upwards on several products and banning a lot of Canadian imports into the U.S. Middle East tensions weighed as well on sentiment.
U.S. producer price inflation data could make an impact as well.
The benchmark S&P/TSX Composite Index, which traded weak for most part of the day, ended with a loss of 216.49 points or 0.6% at 35,906.56.
Asian stocks ended weak on Thursday as rising oil prices and bond yields fueled concerns about inflation and the Federal Reserve's rate path.
Major European markets are quite subdued today . The European Central Bank raised its key interest rate by 25 basis points to 2.5%, as widely expected. Investors eye the central bank President Christine Lagarde's comments for clues about future policy action.
In commodities trading, West Texas Intermediate Crude oil futures are up $3.00 or 3.1% at $99.05 a barrel.
Gold futures are down $45.20 or 1% at $4,415.50 an ounce, while Silver futures are down $2.401 or 3.5% at $66.245 an ounce.
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