FX.co ★ Bay Street May Open With Slightly Positive Bias

Canadian stocks are poised to open with a slightly positive inclination this Friday morning. Bolstered by higher crude oil prices and optimism surrounding interest rate trends, investor sentiment is likely to remain upbeat.

In corporate earnings news, Aritzia Inc (ATZ.TO) reported an adjusted net income of $25.0 million for the first quarter, marking a significant 122.7% increase compared to the same quarter last year.

Cogeco Inc (CGO.TO) announced diluted earnings per share of $1.97 for the third quarter, a stark improvement from a loss of $2.22 per share in the previous year’s third quarter.

On the economic front, data on Canadian building permits for May will be released at 8:30 AM ET.

The Canadian market reached a new all-time high on Thursday, spurred by sustained buying across various sectors. This surge followed soft U.S. inflation data that increased the likelihood of an interest rate cut by the Federal Reserve in September.

Real estate, materials, utilities, and consumer discretionary stocks led the charge, with significant gains observed in the communications, healthcare, and energy sectors as well.

The benchmark S&P/TSX Composite Index closed with an increase of 193.90 points or 0.87% at 22,544.13, after hitting a record high of 22,574.65.

Asian markets concluded the day with mixed results as investors digested soft U.S. inflation figures, mixed Chinese trade data, and comments from several Federal Reserve officials regarding future rate changes.

The U.S. dollar saw a slight uptick as recent inflation data bolstered expectations for a September rate cut. Additionally, a Pew Research Center poll showed former President Trump leading President Biden by 4 points among registered voters.

European markets are trading positively on the anticipation of a rate cut by the Federal Reserve in September, following a decline in U.S. consumer price inflation in June.

In commodities, West Texas Intermediate (WTI) crude oil futures are up by $0.72 or approximately 0.87% at $83.34 per barrel. Gold futures have decreased by $15.20 or 0.63% to $2,406.70 an ounce, while silver futures have dropped by $0.701 or 2.21% to $30.970 an ounce.