Bay Street Looks Headed For Weak Start

(RTTNews) - Lower Canadian and U.S. futures, and concerns about Middle East tensions point to a weak start on Bay Street Thursday morning. Energy stocks may move up on higher crude oil prices. U.S. and Canadian services sector reports, and U.S. jobless claims data may provide some direction, ahead of the crucial U.S. non-farm payroll data, due on Friday.

Data on Canadian service sector activity for the month of September is due at 9:30 AM ET. The S&P Global Canada Composite PMI edged up to 47.8 in August from 47.0 in July, but remained in contraction in private sector activity for the third consecutive month.

Data on U.S. services sector activity, and jobless claims numbers are also in focus.

Enbridge Inc (ENB.TO) announced today that it would build and operate a crude oil and natural gas pipelines in the U.S. Gulf of Mexico for the recently sanctioned Kaskida oil project, operated by BP.

After a slightly positive start and a subsequent fall, the Canadian market climbed to a fresh record high Wednesday morning, but retreated soon and then stayed weak right through the end of the day's session. Escalating tensions in the Middle East weighed on sentiment.

Also, investors refrained from making significant moves due to a lack of triggers on the home front. Stronger than expected U.S. private sector employment data dimmed prospects of aggressive rate cuts by the Federal Reserve.

The benchmark S&P/TSX Composite Index, which hit a new record intra-day high at 24,113.27, ended down 32.44 points or 0.13% at 24,001.55.

Asian stocks turned in a mixed performance on Thursday amid rising tensions in the Middle East due to the conflict between Iran and Israel.

Japanese markets outperformed regional peers after Prime Minister Shigeru Ishiba said the country is not in an environment for an additional rate increase.

Mainland Chinese markets remained closed for a week-long public holiday. South Korean markets were also closed for the National Day holiday.

European stocks are mostly down amid uncertainty about the markets' near term trend due to rising tensions in the Middle East. A report showing a contraction in the euro area private sector in September is weighing as well.

Automobile stocks are down on reports the European Union could push through tariffs of up to 4.5% on Chinese electric vehicle makers as soon as Friday.

In commodities, West Texas Intermediate Crude oil futures are up $1.23 or 1.75% at $71.33 a barrel.

Gold futures are lower by $3.70 or 0.14% at $2,666.00 an ounce, while Silver futures are down $0.180 or 0.56% at $1.740 an ounce.