Bay Street Likely To Open On Subdued Note

(RTTNews) - Canadian shares may open on a subdued note Friday morning with investors looking for directional clues. Data on Canadian producer prices and retail sales, and U.S. business activity are likely to set the tone for the market.

Despite some hawkish comments from Fed officials, investors expect the U.S. central bank to lower interest rates twice before the end of this year.

Data on Canadian producer prices and raw materials prices for the month of May, and retail sales report for April, are due at 8:30 AM ET.

On the U.S. economic front, data on existing home sales for the month of May, and a report on manufacturing and services sector activity in the month of June, are due this morning.

The Canadian market ended modestly higher on Thursday, supported by gains in materials, and select healthcare and industrials stocks. Optimism about an interest rate cut by the Federal Reserve this year helped keep investor sentiment positive.

The benchmark S&P/TSX Composite Index, which fell to a 14-week low on Wednesday, ended up by 64.45 points or 0.3% at 21,581.35 yesterday, after scaling a low of 21,520.41 and a high of 21,662.39 intraday.

Asian stocks ended weak on Friday as new data showed weakness in the U.S. economy and Treasury yields ticked higher on hawkish comments from Federal Reserve officials.

China's Shanghai Composite index drifted down after reports that Canada is preparing potential new tariffs on Chinese-made electric vehicles, following similar action taken by the U.S. and European Union.

European stocks are subdued with investors reacting to weak business activity data from the region. Data showed eurozone services sector activity deteriorated, and U.K.'s private sector growth eased to a seven-month low in June.

In commodities, West Texas Intermediate Crude oil futures are down $0.16 or 0.2% at $81.13 a barrel.

Gold futures are gaining $11.10 or 0.47% at $2,380.10 an ounce, while Silver futures are down $0.221 or 0.72% at $30.600 an ounce.