Bay Street Likely To Open Notably Lower

(RTTNews) - Canadian shares look headed for weak start on Thursday, tracking losses in Asian and European markets, and sharply lower commodity prices.

Concerns about growth amid prospects of higher interest rates triggered a sell-off in Asian and European markets today. Disappointing manufacturing data from Asia and Europe are weighing as well on sentiment.

Markets are betting that the U.S. Federal Reserve and the ECB will both raise their key borrowing costs by 75 basis points when they meet later this month.

Closely watched gauges of manufacturing in Europe and Asia fell in August, raising worries over a possible recession.

In company news, Anglo-Australian mining giant Rio Tinto Plc announced Thursday that it has reached an agreement to acquire the remaining around 49% stake in Turquoise Hill Resources Ltd. (TRQ.TO) that it does not currently own for C$43 per share in cash. The deal values the Turquoise Hill minority share capital at approximately $3.3 billion.

First Quantum Minerals Ltd. (FM.TO) announced that its Chief Financial Officer Hannes Meyer has stepped down as Chief Financial Officer. The company has also announced appointment of Ryan MacWilliam as CFO, and Rudi Badenhorst as Chief Operating Officer, with effect from September 1.

On the economic front, a reading of S&P Global Manufacturing PMI for the month of August is due at 9:30 AM ET. The S&P Global Canada Manufacturing PMI fell to 52.5 in July of 2022 from 54.6 in the previous month, marking the slowest growth rate in the sector since June of 2020.

Canadian stocks ended notably lower on Wednesday, extending the downward trend seen over the past few sessions. The benchmark S&P/TSX Composite Index slumped 182.09 points or 0.9% to 19,330.81, its lowest closing level in a month.

Asian stocks declined on Thursday as data showed the region's factory hubs saw further easing in demand in August. Hawkish comments from another Federal Reserve official on inflation and the pace of future interest rate hikes also weighed on sentiment.

European stocks are down firmly in negative territory, hitting multi-week lows, amid worries that aggressive rate hikes by the Federal Reserve and other central banks in Europe and Asia will dent economic growth.

In commodities trading, West Texas Intermediate Crude oil futures for September are down $1.38 or 1.55% at $88.17 a barrel.

Gold futures are down $14.10 or 0.82% at $1,712.10 an ounce, while Silver futures are down $0.282 or $1.55% at $17.610 an ounce.