Bay Street Likely To Open Higher On Firm Oil, Gold Prices

(RTTNews) - Canadian shares may open higher Friday morning, tracking rising crude oil and bullion prices. A mixed batch of earnings updates from major U.S. banks may limit market's upside.

While JPMorgan Chase has reported record full-year profit despite a 15% drop in net income in the fourth quarter, Bank of America reported a drop in earnings, and Wells Fargo warned that 2024 net income could be 7% - 9% lower than a year earlier.

Corus Entertainment Inc. (CJR.B.TO) reported adjusted net income of C$41.24 million for the quarter ended November 30, 2024, an increase of 23% compared to the adjusted net income of C$33.47 million recorded in the corresponding quarter of the previous year.

The Canadian market ended weak on Thursday, as losses in financials and utilities sectors offset gains in energy and consumer discretionary sections.

Data from the Labor Department showing a bigger than expected rise in U.S. consumer prices in the month of December raised concerns the Fed will keep interest rates higher for longer.

The benchmark S&P/TSX Composite Index ended down 71.02 points or 0.34% at 20,918.40.

Asian stocks ended mostly lower on Friday as strong U.S. inflation data dented hopes of an early cut in interest rates and oil prices jumped amid signs of an escalating conflict in the Red Sea region.

Chinese and Hong Kong markets ended slightly lower as investors digested mixed economic readings and braced for the tense weekend elections in Taiwan. China's exports grew slightly for a second consecutive month in December even as deflationary pressures continued, a slew of data showed earlier in the day.

European stocks are up firmly in positive territory, buoyed by dovish comments from European Central Bank President Christine Lagarde who said the central bank will start lowering rates once inflation heads back to the 2% goal.

In commodities, West Texas Intermediate Crude oil futures are up $2.52 or 3.5% at $74.54 a barrel.

Gold futures are rising $34.00 or 1.7% at $2,053.20 an ounce, while Silver futures are up $0.495 or 2.18% at $23.200 an ounce.