Bay Street Seen Opening Higher

(RTTNews) - Canadian shares are likely to open higher Friday morning, tracking higher crude oil prices and firm European stocks.

Some bargain hunting is likely after five successive days of losses. However, worries about slowing growth could weigh on sentiment and limit market's upside.

On the economic front, data from Statistics Canada showed wholesale Sales in Canada increased 1.6% in the month of May, after seeing a 0.5% drop in the previous month.

Another data from Statistics Canada showed new motor vehicles sales in Canada rose to 150,370 in May, after seeing a revised 144,730 units increase a month earlier.

The Canadian market tumbled on Thursday as fears about a recession due to aggressive monetary tightening by central banks to rein in inflation rendered the mood bearish.

Markets across Europe fell sharply, and the U.S. market too ended weak despite regaining a substantial portion of lost ground.

The benchmark S&P/TSX Composite Index, which dropped to a low of 18,169.86, ended the session with a loss of 286.13 points or 1.54% at 18,329.05, extending losses to a fifth straight session.

Asian stocks turned in a mixed performance in cautious trade on Friday as Chinese GDP growth data missed forecasts and two Fed officials downplayed the likelihood of a 100 basis point rate hike at the U.S. central bank's July 26-27 meeting.

Chinese shares fell sharply after official data showed GDP grew 0.4% year-on-year in the second quarter, missing expectations for 1% growth. The benchmark Shanghai Composite Index slumped 1.6%, while Hong Kong's Hang Seng Index closed 2.2% down.

European stocks are up in positive territory after a couple of Fed officials signaled support for a second straight 75-basis point rate hike at the central bank's policy meeting later this month, alleviating some fears of a 100-basis point hike.

In commodities trading, West Texas Intermediate Crude oil futures are up $1.52 or 1.6% at $97.30 a barrel.

Gold futures are down marginally at $1,704.80, while Silver futures are gaining $0.165 or 0.91% at $18.390 an ounce.