Bay Street is likely to open on a negative note

(RTTNews) – Falling Canadian futures amid falling bullion prices point to a weak start on Bay Street on Friday morning.

Canadian jobs data for May and US consumer price inflation data, both due before the opening bell, are expected to have a significant impact on market moves. today.

Canadian employment data and a report on average hourly wages for the month of May are due at 8:30 a.m. ET.

The Canadian economy added 15,300 jobs in April 2022, following an increase of 75,000 in March. Economists expected an addition of 55,000 jobs in April. The unemployment rate in Canada fell to 5.2% in April 2022 from 5.3% in March, in line with market expectations. This is the lowest rate on record since comparable data became available in 1976.

The Labor Department report is expected to show consumer prices in the United States rose 0.7% in May after rising 0.3% in April. Core consumer prices, which exclude food and energy prices, are expected to rise 0.5% in May after rising 0.6% in April.

The Canadian market ended notably lower on Thursday, weighed down by losses in the healthcare, materials, technology and financials sectors.

The mood in the market was quite bearish as global equities fell amid growing concerns about inflation, interest rate hikes and slowing growth. Investors were also eagerly awaiting crucial U.S. inflation data due Friday.

Reports say Shanghai and Beijing imposed new Covid-related restrictions just days after easing restrictions.

Investors also digested comments from the European Central Bank. The ECB confirmed that it will hike rates in July and also said another hike is very likely in September if inflation does not subside by then. The bank also lowered its growth forecast for the current year and next.

Meanwhile, the Bank of Canada is sounding the alarm about the risk that record house prices and a growing number of households with high mortgage debt could pose to the Canadian economy.

“In Canada, high levels of household debt and high house prices remain two key interconnected vulnerabilities,” the bank said in its annual review of the financial system.

The benchmark S&P/TSX Composite Index, which remained in negative territory throughout the day’s session, ended with a loss of 228.54 points or 1.1% at 20,563.89, the lowest of the day.

Asian stocks ended lower on Friday amid concerns about slowing global growth and rising interest rates. Announcements of mass testing in Shanghai have also raised fears of a return to strict and prolonged shutdowns.

European stocks are down sharply, weighed down by hawkish directives from the European Central Bank and the imposition of new lockdown measures in parts of China. Investors are now awaiting US consumer inflation data.

In commodities trading, West Texas Intermediate crude oil futures were up $0.71 or 0.6% at $122.22 a barrel.

Gold futures are down $14.90 or 0.8% at $1,837.90 an ounce, while silver futures are down $0.427 or near 2% to $21.390 an ounce.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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