Bay Street Seen Opening Higher

(RTTNews) - Canadian shares are likely to open higher Friday morning, tracking steady crude oil and bullion prices, and positive global cues.

Optimism over a debt deal in the U.S. is likely to prompt investors to pick up stocks.

Canadian Western Bank (CWB.TO) reported second-quarter net income of $70 million, down 26% from a year ago.

On the economic front, preliminary data on Canada's wholesale sales for the month of April is due at 8:30 AM ET.

The Canadian market ended weak on Thursday, declining for a third straight day, as lingering concerns about economic slowdown, and fears of a U.S. debt default rendered the mood bearish.

Fitch Ratings placed the United States "AAA" credit on "rating watch negative," signaling downside risks to U.S. creditworthiness.

Investors digested earnings announcements from some leading banks. Despite a surge in U.S. tech sector after NVIDIA Corporation forecast $11 billion in sales in the current quarter, technology stocks in the Canadian market are not attracting any significantly strong support.

The benchmark S&P/TSX Composite Index, which fell to 19,717.36, ended the session with a loss of 153.61 points or 0.77% at 19,774.08.

Asian stocks ended Friday's session broadly higher after reports suggested U.S. lawmakers are inching closer to an agreement that would raise the debt limit for about two years and cap federal spending at the same level as fiscal 2023 for two years.

The dollar eased on optimism that the U.S. government would avert a government default.

European stocks are in positive territory this afternoon after having dropped to lower levels earlier after opening higher. Optimism over a debt deal in the U.S. and encouraging retail sales data from the U.K. help underpin investor sentiment to some extent.

In commodities, West Texas Intermediate Crude oil futures are up $0.58 or 0.81% at $72.41 a barrel.

Gold futures are gaining $10 or 0.52% at $1,953.70 an ounce, while Silver futures are up $0.450 or 1.96% at $23.360 an ounce.