Bay Street Likely To Open Lower

(RTTNews) - Canadian shares look headed for a weak start on Friday due to trade war concerns, although fairly firm crude oil and bullion prices may help limit the market's downside. Data showing an increase in Canadian employment in the month of June and a drop in the unemployment rate may also aid sentiment a bit.

U.S. President Donald Trump announced a 35% tariff on Canadian goods, effective August 1, 2025, and warned of a blanket tariff of 15-20% on most trading partners that haven't got letters yet.

Trump also said he would make an announcement regarding Russia, raising the prospect of more sanctions on the major oil producer.

Data from Statistics Canada showed employment in Canada increased by 83,100 in June. The unemployment rate in Canada decreased to 6.9% in June from 7% in May.

Average hourly earnings in Canada increased to C$ 37.22 in June of 2025 over the previous month.

A separate data from Statistics Canada showed building permits in Canada increased to 12% in May from -6.8% in April of 2025.

On Thursday, the Canadian market climbed to a new high despite ongoing concerns about tariffs. The benchmark S&P/TSX Composite Index, which touched an intraday high of 27,120.00 post noon, settled at 27,082.30, gaining 109.98 points or about 0.41%.

In a Truth Social post Wednesday evening, Trump announced a 50 percent tariff on copper is due to go into effect on August 1st.

Trump also posted several more letters to world leaders on Truth Social revealing plans to increase tariffs.

Asian shares ended weak in cautious trade on Friday after Trump announced a 35% tariff on Canadian goods, effective August 1, 2025, and warned of a blanket tariff of 15-20% on most trading partners that haven't got letters yet.

The major European markets are down in negative territory with notable losses, hurt by renewed fears of a global trade war following U.S. President's latest tariff announcements.

In commodities, West Texas Intermediate Crude oil futures are up $0.74 or 1.11% at $67.31 a barrel.

Gold futures are gaining $34.80 or 1.02% at $3,360.50 an ounce, while Silver futures are up $1.030 or 2.76% at $38.335 an ounce.