Canadian Shares Look Headed For Weak Start

(RTTNews) - Lower Canadian and U.S. futures, weak commodity prices and European markets point to negative start on Bay Street Tuesday morning.

Worries about the health of the world's second largest economy continue to weigh on sentiment. Investors will also be reacting to Canadian inflation data, and a slew of earnings and economic updates from the U.S.

Canadian inflation data for the month of July is due at 8:30 AM ET. A report on Canadian manufacturing sales is also due at 8:30 AM ET.

The annual inflation rate in Canada fell to 2.8% in June of 2023, the lowest since March of 2021 from 3.4% in the previous month.

Canadian annual core inflation, which excludes food and energy costs, eased to a 2-year low of 3.2% in June 2023, down from 3.7% in May.

In earnings news, Seabridge Gold (SEA.TO) announced that it posted a net profit of $9.0 million ($0.11 per share) compared to a net profit of $19.1 million ($0.24 per share) for the same period in 2022.

Canadian stocks ended weak on Monday as concerns over the health of the Chinese economy weighed on commodity prices and rendered the mood a bit bearish.

Concerns that the Federal Reserve will likely hold interest rates higher for longer timed weighed as well.

The benchmark S&P/TSX Composite Index ended with a loss of 117.03 points or 0.57% at 20,290.54. The index, which opened at 20,337.74, dropped almost 100 points to 20,237.90 in the next few minutes, and regained some lost ground as the day progressed.

Asian stocks ended on a mixed note on Tuesday after a slew of Chinese economic data missed expectations and the country's central bank cut a key interest rate in an effort to boost flagging growth.

European stocks are down firmly in negative territory Tuesday afternoon amid growth concerns after data showed China's consumption and investment cooled further in July. Factory production growth also decelerated, adding to pressure on the economy from multiple fronts.

In commodities, West Texas Intermediate Crude oil futures are down $0.91 or 1.1% at $81.60 a barrel.

Gold futures are down $9.50 or 0.49% at $1,934.50 an ounce, while Silver futures are lower by $228 or 1.02% at $22.480 an ounce.