Bay Street Seen Opening On Cautious Note

(RTTNews) - Lower U.S. and Canadian futures and choppy European stocks point to a cautious start on Bay Street Friday morning.

Higher crude oil prices might trigger some buying in the energy section and lift the market up, but weak bullion prices are likely to limit upside.

The Canadian market extended its losses to a third session and ended sharply lower on Thursday, led by losses in gold and energy stocks. The S&P/TSX Composite Index climbed off its worst levels after an early slump but still closed down 217.28 points or 1.1% at 18,861.36.

The continued weakness on Bay Street came amid lingering concerns about the global economic outlook and the possibility of a recession. Central bank chiefs have recently reaffirmed their resolve to bring down inflation despite threats to economic growth.

Asian stocks ended broadly lower on Friday amid growth worries, as a slew of surveys showed regional manufacturing activity stalled in June and many companies were hit by supply disruptions caused by China's strict COVID-19 lockdowns.

After a weak start and a subsequent rebound into positive territory, European stocks turned weak around noon and are currently down in the red. The mood is quite cautious with investors looking for direction after markets suffered their worst quarter since early 2020.

In commodities trading, West Texas Intermediate Crude oil futures are up $2.14 or 2.02% at $107.90 a barrel.

Gold futures are down $19.80 or 1.1% at $1,787.50 an ounce, while Silver futures are lower by $0.752 or 3.7% at $19.600 an ounce.