Bay Street Likely To See Mixed Start

(RTTNews) - Canadian shares are likely to open on a mixed note on Thursday, tracking commodity prices and somewhat sluggish European markets.

Worries about a surge in new Covid-19 cases in China, and the impact of rising interest rates on global economic growth are likely to weigh as well.

In economic news, a report from the Canadian Federation of Independent Business showed the reading on small business sentiment in Canada increased to 50.9 points in December from 50.0 points in November.

The Canadian market ended notably lower on Wednesday with shares from across several sectors losing ground on sustained selling pressure.

The benchmark S&P/TSX Composite Index ended with a loss of 222.55 points or 1.14% at 19,284.10, slightly off the day's low of 19,263.61.

Asian stocks ended weak on Thursday amid concerns about the rapid spread of COVID infections in China and fears about the potential for new variants to emerge. Several countries including the United States, Japan, Italy Taiwan and India have imposed new restrictions mandating COVID-19 tests for passengers arriving from China.

Fears about a possible U.S. recession in 2023 due to Fed's aggressive policy tightening to tame inflation weighed a swell.

European stocks are recovering after opening weak, although the mood remains cautious due to concerns over the Federal Reserve's continued policy tightening and worries about the impact of China's latest COVID wave on global supply chains and inflation.

In commodities trading, West Texas Intermediate Crude oil futures are down $0.91 or 1.16% at $78.05 a barrel.

Gold futures are down $1.60 or 0.09% at $1,814.20 an ounce, while Silver futures are up $0.235 or 0.99% at $24.075 an ounce.