Bay Street Likely To Open On Weak Note

(RTTNews) - Canadian shares are likely to open lower on Thursday, tracking global markets, where stocks drifted lower amid rising uncertainty about pace of economic recovery due to the rapid surge of the coronavirus pandemic and fears of another widespread lockdown.

An escalation in U.S.-China tensions may also weigh on sentiment. U.S. Secretary of State Mike Pompeo said the U.S. would impose visa restrictions on Chinese firms like Huawei Technologies that he accused of facilitating human rights violations.

In economic news, private businesses in Canada hired a record 1042.9 thousand workers in June of 2020, after shedding 2059.4 thousand jobs in May, as many businesses reopened across the country amid the gradual lifting of lockdown restrictions.

On Wednesday, the benchmark S&P/TSX Composite Index ended with a gain of 154.88 points or 0.97% at 16,063.33, nearly 70 points off the day's high of 16,130.58.

In company news, Cogeco Inc. (CGO.TO) reported third-quarter net profit of $97.5 million of which $31.1 million, or $1.96 per share, was attributable to owners of the Corporation compared to $185.0 million, $59.9 million, and $3.71 per share, respectively, for the same period of fiscal 2019.

Cogeco Communications Inc. (CCA.TO) announced that profit for the quarter ended 31 May 2020 amounted to $96.7 million, of which $90.8 million, or $1.89 per share, was attributable to owners of the Corporation compared to $182.0 million, $179.1 million, and $3.62 per share, respectively, in the comparable period of fiscal 2019.

Asian stocks fell on Thursday amid fears about a second wave of coronavirus infections and the reimposition of lockdowns in the wake of fresh spikes in infections in the United States, Australia and Japan. U.S.-China tensions also remained on investors' radar.

European stocks are weak with rising tensions between the U.S. and China, and fears of a second wave of coronavirus infections dashing investor hopes for a revival of the global economy.

In commodities, West Texas Intermediate crude oil futures for August are down $0.37 or 0.9% at $40.83 a barrel.

Gold futures for August are lower by $7.00 or 0.39% at $1,806.80 an ounce.

Silver futures for September are down $0.096 or 0.5% at $19.665 an ounce, while Copper futures for September flat at $2.8850 per pound.

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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