On Friday morning, Canadian stocks are likely to start off on a slightly positive note, driven by steady European markets and rising gold prices. However, uncertainties regarding interest rate fluctuations and economic recession might stir a sense of caution. Energy stocks may face a rough patch due to the falling crude oil prices.
A preliminary report on Canadian wholesale sales for December is expected to be released at 8:30 AM ET.
On Thursday, the Canadian market witnessed modest gains, mainly led by the energy, materials, and utilities sectors. The benchmark S&P/TSX Composite Index closed with a gain of 75.76 points or 0.36% at 21,101.54.
Asian markets displayed a mixed performance on Friday. The excitement caused by China's unexpected announcement of a 50-basis point reduction in the bank's reserve requirement soon evaporated. The Nikkei was adversely impacted due to anticipations of a policy shift by the Bank of Japan.
On the other hand, European stocks are enjoying significant gains. The surge in the French market, supported by a boost in consumer confidence in January, is a key factor. Additionally, signs of easing inflation in the Eurozone are contributing to a solid market base.
In terms of commodities, the West Texas Intermediate Crude oil futures have dropped by $0.80 or 1.02%, standing at $76.56 per barrel. In contrast, Gold futures have increased by $4.70 or 0.23% to $2,022.50 an ounce, while silver futures have gained $0.103 or 0.4%, reaching $23.030 an ounce.
