Bay Street should open lower

(RTTNews) – Canadian stocks are set to open on Wednesday with a negative spread, following weak global signals. Rising crude oil and gold prices could help limit the market’s decline.

Concerns over the US debt deal and caution ahead of the release of the minutes of the Federal Reserve’s latest policy meeting drove Asian and European stocks lower. US futures are also in negative territory.

The US Treasury Department has asked federal agencies if they can make upcoming payments at a later date, The Washington Post reported, citing two people familiar with the matter.

US Treasury Secretary Janet Yellen previously warned lawmakers that a default in early June was “highly likely”.

The Canadian market ended significantly lower on Tuesday, weighed down by losses in the technology, industrials, materials and consumer sectors. Concerns about growth and interest rates, as well as fears of a stalemate in talks on the US debt ceiling weighed on sentiment.

The benchmark S&P/TSX Composite ended down 205.05 points or 1.01% at 20,146.01, slightly off the day’s low.

Asian stocks fell on Wednesday as concerns over the US debt deal lingered and investors awaited clues from industrial sector surveys in Europe and the United States.

European stocks are down sharply as discussions of the US debt ceiling drag on and investors waited for the minutes of the Federal Reserve meeting in early May for further clues on the Fed’s rate hike path.

In commodities, West Texas Intermediate crude oil futures are up $1.16 or 1.59% at $74.07 a barrel.

Gold futures are up $6.20 or 0.31% at $1,980.70 an ounce, while silver futures are down $0.109 or 0.46% at $23.515 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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