Bay Street Looks Headed For Subdued Start; US PCE Data In Focus

(RTTNews) - Slightly lower Canadian and U.S. futures indicate a subdued start for the Canadian market Friday morning, but investors are likely to make their moves, reacting to U.S. PCE score and Canadian GDP data that due before the opening bell.

Data on U.S. personal consumption expenditure, the preferred index used by Fed officials to track inflation, is due at 8.30 AM ET. The reading is expected to show a 0.2% rise on a monthly basis in August. The reading is seen easing to 2.3% an annual basis in August from 2.5% a month earlier.

The Canadian Federation of Independent Business said in its report that the CFIB Business Barometer in Canada, which reflects 12-month forward expectations for business performances in the country, eased to 55 in September, from a revised two-year high of 56.9 in August.

Canadian GDP data for the month of August is due at 8:30 AM ET.

The Canadian market posted new intraday and closing highs on Thursday, lifted by gains in technology, consumer discretionary, materials and utilities sectors. Strong results from U.S. chipmaker Micron, and expectations of more interest rate cuts by the Federal Reserve helped underpin sentiment.

The benchmark S&P/TSX Composite Index, which climbed to 24,107.00, ended the day's session at 24,033.83, gaining 127.95 points or 0.54%.

Asian stocks closed broadly higher on Friday with investors cheering China implementing policy announcements made earlier in the week to support economic growth. The euphoria eclipsed anxiety surrounding the release of the PCE-based inflation readings from the U.S. later in the day.

The major European markets are up firmly in positive territory amid renewed optimism over China's stimulus moves, and on expectations of more interest-rate cuts by the Fed and other central banks. Soft inflation data from France and Spain also help underpin sentiment.

In commodities, West Texas Intermediate crude oil futures are up $0.20 or 0.28% at $67.87 a barrel.

Gold futures are down $4.50 or 0.17% at $2,690.40 an ounce, while Silver futures are down $0.071 or 0.22% at $32.270 an ounce.