### Canadian Shares Potentially Under Pressure Due to Global Economic Concerns
Early Thursday, Canadian shares may face downward pressure due to weak performance in European stocks, declining crude oil and bullion prices, and concerns that the Federal Reserve might only reduce interest rates once this year.
The sentiment in Europe is being influenced by comments from European Central Bank Governing Council member Joachim Nagel. Nagel cautioned that consumer price growth in the eurozone remains persistent, suggesting that borrowing costs won't be lowered automatically.
On Wednesday, the Canadian market closed positively as soft U.S. inflation data alleviated some concerns about future interest rate hikes. The benchmark S&P/TSX Composite Index gained 74.21 points, or 0.34%, to finish at 21,961.55, having climbed to a high of 22,127.72 earlier in the session.
Asian markets closed broadly higher on Thursday, fueled by expectations that the soft U.S. inflation data might prompt the Fed to cut interest rates in September. However, markets in China and Japan ended lower due to concerns over potential provisional duties that Europe may impose on Chinese electric vehicle imports in July.
In Europe, stocks are notably lower as investors adjust to the likelihood that the Fed will only implement one interest rate cut this year, contrary to earlier expectations of two or three cuts.
In the commodities market, West Texas Intermediate Crude oil futures have declined by $0.76, or 0.97%, to $77.74 per barrel. Gold futures have dropped by $32.40, or 1.38%, to $2,322.40 an ounce, while silver futures are down $1.092, or 3.61%, to $29.175 an ounce.
