Bay Street Seen Opening On Mixed Note

(RTTNews) - Canadian shares are likely to open on a mixed note Thursday morning. While European stocks are up firmly in positive territory, commodities are turning in a mixed performance. With the crucial U.S. jobs data due on Friday, and the U.S. market closed today for Independence Day holiday, the mood in the Canadian market is likely to remain cautious.

Data on Canadian manufacturing and services sector activity for the month of June is due at 9:30 AM ET.

The S&P Global Canada Composite PMI rose to 50.6 in May 2024, up from 49.3 in the prior month, signaling the first expansion in the country's private sector in a year.

The service sector activity increased in May with the PMI reading coming in at 51.1 vs 49.3 in April, while manufacturing output declined for the tenth consecutive month with the PMI score for the month coming in at 49.3, down from 49.4 in April.

CGI Inc. (GIB.TO) announced the acquisition of Celero's credit union business serving clients across Canada, consisting of master services agreements that span managed services, core banking, digital banking and related IT services. As a result of the acquisition, CGI will enhance and expand its services to credit unions.

The Canadian market rose to a four-week high on Wednesday thanks to strong buying in the materials, utilities, industrials and financials sectors.

Data showing a smaller than expected increase in U.S. private sector employment, and an unexpected drop in service sector activity raised hopes the Fed will cut interest rate in September.

The benchmark S&P/TSX Composite Index ended with a gain of 269.87 points or 1.23% at 22,223.67, the highest close since June 6.

Asian stocks turned in a mixed performance on Thursday even as fresh signs of a weakening U.S. economy revived hopes of interest rate cuts sooner rather than later.

The dollar was on the back foot ahead of elections in the U.K. and France, and before the release of key U.S. non-farm payrolls report, due Friday.

European stocks are up in positive territory as voting began across polling stations in the U.K., with polls predicting a historic win for the Labour party.

Meanwhile, investors hope the far-right National Party would not get a majority of seats in French parliament.

In commodities, West Texas Intermediate Crude oil futures are down $0.67 or 0.8% at $83.21 a barrel.

Gold futures are down $2.00 or 0.08% at $2,367.40 an ounce, while Silver futures are lower by $0.207 or 0.67% at $30.635 an ounce.