FX.co ★ Bay Street Likely To Open Higher

Canadian stocks are poised for an optimistic start on Friday, bolstered by robust crude oil prices and advancements in the European markets. The positive earning reports from Apple Inc. are anticipated to further boost market sentiment.

Investors are also expected to respond to various earnings updates from Canadian and U.S. companies, along with the U.S. non-farm payroll data for April.

In first-quarter financial reports, TC Energy Corp announced a net income of $1.2 billion or $1.16 per share, a decrease from $1.3 billion or $1.29 per share in the same period of 2023. Meanwhile, TransAlta Corporation reported net earnings of $222 million for the first quarter of 2024, down from $294 million in the equivalent period of 2023.

Brookfield Business Partners posted a net income of $48 million for the quarter ending March 31, 2024, compared to $74 million in the previous period.

In terms of economic updates, the manufacturing and service sector data for April in Canada is scheduled to be released at 9:30 AM ET.

On Thursday, the Canadian market nudged higher, assisted by statements from the Bank of India Governor, Tiff Macklem. He indicated that the central bank is nearing a stage where it may start cutting interest rates. The Federal Reserve Chair, Jerome Powell’s remarks about a likely interest rate reduction by the central bank also added to the positive market sentiment.

The benchmark S&P/TSX Composite Index climbed to 21,889.26 and ended the session with a gain of 94.67 points or 0.44% at 21,823.22, after gathering over 200 points from an early low.

On Friday, Asian stocks rose broadly with technology shares leading the rally, following Apple's impressive quarterly earnings and extensive buyback program. However, trading volumes in the region were limited due to market holidays in China and Japan.

In Europe, stocks are performing well, lifted by comments from European Central Bank policymaker Yannis Stournaras, who predicted three rate cuts in 2024. Positive earnings reports and signs of growth in the UK service sector also fortified investor sentiment.

In commodities, West Texas Intermediate Crude oil futures rose by $0.49 or 0.62% to $79.44 a barrel. Gold futures fell by $3.70 or 0.17% to $2,305.90 an ounce, while Silver futures also dropped by $0.159 or 0.59% to $26.670 an ounce.