Bay Street Likely To Open On Negative Note

(RTTNews) - Lower Canadian and U.S. futures, weakness in European markets and sluggish commodity prices point to a negative start for Canadian shares on Tuesday.

Despite fairly encouraging economic data from China and Japan, and reports about the prospects of the U.S. deciding to cut some tariffs on Chinese imports to tame inflation, the mood in the market is likely to remain cautions amid fears of a recession.

TELUS Communications Inc., an arm of Telus Corporation (TU), on Tuesday announced an investment of $23 billion in network infrastructure, operations, and spectrum across Ontario in the next four years thereby creating 9,500 jobs. In addition, the Canadian firm also plans to invest $70 billion across Canada by 2026.

Data on Canadian building permits for the month of May is due at 8:30 AM ET. The total value of building permits in Canada fell 0.6% to C$ 11.7 billion in April of 2022, following a downwardly revised 6.3% slump in the prior month

Energy and materials shares turned in a fine performance in the Canadian market on Monday and lifted the benchmark S&P/TSX Composite Index to a strong close.

Despite worries about slowing growth and rising interest rates, a rally in European markets and firm commodity prices helped lift sentiment. Activity in the market was a bit subdued as the U.S. market remained closed for a holiday.

The S&P/TSX Composite Index, which climbed nearly 270 points to 19,129.70, ended with a gain of 167.50 points or 0.89% at 19,028.86.

Asian stocks ended higher on Tuesday after reports emerged that the United States may decide to cut some tariffs on Chinese imports in an effort to tame record-high inflation.

Data showing China's services activity jumped to the highest level in nearly a year in June and Japan's services activity expanded at the fastest pace since October 2013, contributed as well to the uptick in the Asian markets.

European stocks are down sharply following a survey showing business growth across the euro zone slowed further last month, partly due to inflationary pressures. Signs of a flare-up in Covid-19 cases in China weigh as well on sentiment.

In commodities trading, West Texas Intermediate Crude oil futures are down $0.24 or 0.22% at $108.19 a barrel.

Gold futures are lower by $3.30 or 0.19% at $1,798.20 an ounce, while Silver futures are gaining marginally at $19.680 an ounce.