Bay Street Likely To See Mixed Start

(RTTNews) - Canadian shares are likely to open mixed Friday morning amid cautious moves by investors. While the continued surge in new coronavirus cases across the world remains a major concern, there are still hopes governments and central banks will come out with additional stimulus to boost economic growth.

Rising tensions between the U.S. and China may weigh on sentiment and force investors to refrain from going on a buying spree.

In economic news, wholesale sales in Canada increased to 5.7% in May, after seeing a decline of 21.6% a month earlier, data from Statistics Canada showed.

On Thursday, the benchmark S&P/TSX Composite Index ended with a loss of 38.83 points or 0.24% at 16,024.50, after scaling a low of 15,957.77 and a high of 16,069.07 intraday.

In company news, Maple Leaf Foods Inc., (MFI.TO) announced the sale of its poultry plant in Drummondville, Quebec, and associated supply, to Giannone Poultry of St. Cuthbert, Quebec. As part of the sale, Maple Leaf Foods and Giannone have reached a three-year supply agreement that will allow Maple Leaf Foods to maintain its supply of fresh chicken.

Asian stocks ended mostly higher on Friday with optimism about additional economy-boosting measures in major countries outweighing concerns about the surge in coronavirus infections and U.S.-China tensions.

European stocks are turning in a somewhat mixed performance, looking ahead to the outcome of the EU Summit. EU leaders are expected to provide details of a 750-billion-euro recovery fund. German Chancellor Angela Merkel is doubtful about a solution as she feels the differences are very very big.

In commodities, West Texas Intermediate Crude oil futures for August are down $0.32 or 0.8% at $40.43 a barrel.

Gold futures for August are rising $7.00 or 0.4% at $1,807.30 an ounce. Silver futures for September are down slightly at $19.570 an ounce, while Copper futures for September are gaining $0.0035 or 0.12% at $2.9050 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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