Canadian shares are poised for a mixed opening on Thursday, reflecting the fluctuating trends in the commodity markets. Market activity is expected to be driven by specific stocks, and overall trading is anticipated to remain subdued for the majority of the session.
On Wednesday, the Canadian market closed on a down note, retreating from record highs and ending a five-day winning streak. This decline was primarily due to a significant drop in technology stocks, which faced pressure after a sell-off in U.S. semiconductor shares in light of the potential implementation of stricter trade restrictions on Chinese companies.
The benchmark S&P/TSX Composite Index, which dipped to 22,808.17 during the session, ultimately closed with a loss of 144.22 points, or 0.63%, at 22,851.17.
In Asia, stocks widely declined on Thursday as technology shares faced intense selling pressure amidst signs of escalating trade tensions between China and the United States.
Reports indicate that Washington is considering imposing tighter controls on the export of advanced semiconductor technology to China.
In other news, Republican presidential nominee Donald Trump has stirred controversy by suggesting that Taiwan should compensate the U.S. for its defense support.
Meanwhile, European markets are trending higher ahead of the European Central Bank's (ECB) monetary policy announcement. Markets generally expect the ECB to maintain its key interest rates unchanged, following a rate cut in June—the first in five years—where the main refinancing rate was reduced by 25 basis points to 4.25%.
Additionally, the ECB is likely to withhold new information regarding its future policy direction due to persistent concerns over the robustness of wage growth and underlying inflation.
In the commodities market, West Texas Intermediate Crude oil futures have decreased by $0.11 or 0.13%, settling at $82.74 per barrel.
Gold futures have risen by $8.50 or 0.35%, reaching $2,468.40 an ounce, while Silver futures have increased by $0.228 or 0.75%, standing at $30.605 an ounce.
