Canadian shares may begin the trading day on a muted note this Friday morning as investors seek clear market direction. Key data releases, including Canadian producer prices, retail sales, and U.S. business activity, are anticipated to influence market sentiment.
Despite some hawkish remarks from Federal Reserve officials, market participants continue to expect the U.S. central bank to enact two interest rate cuts before the year's end.
Canadian economic indicators, including May's producer prices and raw materials prices, and April's retail sales figures, will be reported at 8:30 AM ET.
In the U.S., data on May's existing home sales and a report on June's manufacturing and services sector activity will also be released this morning.
On Thursday, the Canadian market closed with modest gains, led by material, healthcare, and selected industrial stocks. Investor optimism regarding a potential Federal Reserve interest rate cut this year bolstered market sentiment.
The benchmark S&P/TSX Composite Index, which had slumped to a 14-week low on Wednesday, rebounded by 64.45 points, or 0.3%, closing at 21,581.35. The index fluctuated within an intraday low of 21,520.41 and a high of 21,662.39.
Asian markets concluded the week on a weak note. New data highlighted weaknesses in the U.S. economy, and Treasury yields inched higher following hawkish comments from Federal Reserve officials. The Shanghai Composite Index in China declined amid reports that Canada is planning new tariffs on Chinese-made electric vehicles, echoing similar actions by the U.S. and European Union.
European markets are subdued as investors react to weak business activity data across the region. The eurozone's services sector showed signs of deterioration, while the UK's private sector growth slowed to a seven-month low in June.
In the commodities market, West Texas Intermediate crude oil futures have dipped by $0.16, or 0.2%, to $81.13 per barrel. Meanwhile, gold futures are up by $11.10, or 0.47%, reaching $2,380.10 per ounce, whereas silver futures have declined by $0.221, or 0.72%, priced at $30.600 per ounce.
