Bay Street Likely To Open With Positive Bias

(RTTNews) - Canadian shares are likely to open with a positive bias on Friday, tracking firm European markets and higher U.S. futures.

However, weak commodity prices might weigh on energy and materials shares and limit market's upside.

In company news, Silvercorp Metals Inc. (SVM.TO) said the company produced produced approximately 1.8 million ounces of silver, 1,200 ounces of gold, 18.0 million pounds of lead and 6.0 million pounds of zinc, in the second quarter of the current financial year, representing increases of 6%, 50%, and 2%, respectively in silver, gold and lead, and a decrease of 20% in zinc compared to the second quarter ended September 30, 2021.

On the economic front, data on Canadian new motor vehicles sales, manufacturing sales and wholesale sales for the month of August are due at 8:30 AM ET.

The Canadian market ended on a buoyant note on Thursday, rebounding strongly after an early plunge. The benchmark S&P/TSX Composite Index, which fell to 17,873.18 in early trades, losing nearly 330 points in the process, rallied to 18,661.43 before settling at 18,613.63, gaining 407.35 points or 2.24%.

Asian stocks posted strong gains on Friday after U.S. stocks staged a remarkable turnaround to close sharply higher overnight despite higher-than-expected inflation numbers.

European stocks rose on Friday to extend gains from the previous session amid hopes that U.S. inflation may have peaked around 8 percent and would trend lower in the coming months.

Investors also cheered reports of potential fiscal plan U-turn. Media reports suggest that the British government will announce a U-turn on elements of its 43-billion-pound package of unfunded tax cuts that sparked turmoil in financial markets over the past few weeks.

In commodities trading, West Texas Intermediate Crude oil futures are down $1.59 or 1.79% at $87.52 a barrel.

Gold futures are down $15.80 or 0.94% at $1,661.20 an ounce, while Silver futures are lower by $0.268 or 1.42% at $18.650 an ounce.