Bay Street Likely To Open Slightly Weak

(RTTNews) - Canadian shares look headed for a slightly weak start on Tuesday, tracking lower bullion prices and subdued crude futures.

Canadian inflation data, due at 8:30 AM ET, is likely to significantly impact the market. The focus will also be U.S. debt ceiling talks.

The annual inflation rate in Canada fell to 4.3% in March, the lowest since August 2021. Inflation came in at 5.2% in February. On a monthly basis, consumer prices edged 0.5% higher in March, up from the 0.4% increase in February.

Core inflation in Canada rose 4.3% in March, the least since January 2022.

Final data on Canadian manufacturing sales for the month of March is also due at 8:30 AM ET. Preliminary data showed manufacturing sales in Canada likely rose 0.7% month-over-month in March, rebounding from a 3.6% decline in February.

The Canadian market closed on a firm note on Monday, riding on gains in energy, materials and technology stocks. Several stocks from financials and real estate sectors moved up as well.

The benchmark S&P/TSX Composite Index ended with a gain of 120.35 points or 0.59% at 20,539.97, near the day's high.

Asian stocks ended mixed on Tuesday after Chinese economic data came in weaker than expected. Focus shifted to the U.S. debt ceiling, as U.S. President Joe Biden and congressional leaders are due to resume talks at the White House later in the day.

Chinese shares ended lower as the latest readings on industrial production, retail sales and fixed asset investment missed expectations, adding to signs the recovery in the world's second largest economy might be faltering.

European shares are roughtly flat as investors digest disappointing data from China and look for progress in the U.S. debt ceiling talks.

Meanwhile, Eurostat data showed the euro zone economy grew marginally in the first quarter, matching preliminary estimates. The euro zone economy grew by 0.1% in the quarter in the three months to March of 2023.

Elsewhere, the German ZEW headline number showed that the economic sentiment index deteriorated sharply to -10.7 in May from 4.1 in April.

The U.K.'s jobless rate came in higher than expected in the three months to March, reducing concerns over more interest rate hikes from the Bank of England.

In commodities, West Texas Intermediate crude oil futures are down marginally at $71.05 a barrel.

Gold futures are down $12.70 or 0.65% at $2,010.00 an ounce, while Silver futures are lowr by $0.346 or 1.42% at $23.945 an ounce.