FX.co ★ Bay Street Seen Opening On Positive Note

Canadian shares are poised for a positive start on Friday, buoyed by rising TSX futures, higher crude oil prices, and stable European stocks. Investors will be closely monitoring the U.S. Personal Consumption Expenditures (PCE) data, which is expected to provide insights into the Federal Reserve's potential moves in its upcoming policy meeting.

In corporate earnings news, Canfor Corp (CFP.TO) reported an increased adjusted loss of $168.7 million, or $1.42 per share, for the second quarter, compared to a loss of $44.3 million, or $0.36 per share, for the same period last year. Conversely, Eldorado Gold Inc. (ELD.TO) announced adjusted earnings of US$66.6 million for the second quarter, a significant rise from US$9.7 million in the previous year. MEG Energy Corp (MEG.TO) posted net earnings of $234 million for the first half of the current fiscal year, up from $217 million in the first half of 2023.

From an economic perspective, the Canadian Federation of Independent Business reported a slight decline in the Canada Business Barometer to 55.4 in July, down from a revised 56.0 in June. This index measures 12-month forward expectations for business performance across the country.

The Canadian market experienced a downturn on Thursday, reaching two-week lows due to declines in the materials and industrials sectors. Investor sentiment remained cautious, largely driven by the latest quarterly earnings reports. The S&P/TSX Composite Index closed $31.54 points lower, at 22,608.03, after oscillating between a low of 22,463.96 and a high of 22,719.12 during the trading session.

Asian markets closed mixed following strong U.S. GDP data and signs of cooling inflation, which suggest a potential soft landing for the U.S. economy. Market expectations have adjusted, now projecting three rate cuts from the Federal Reserve by year-end, with some anticipating the first cut to be substantial.

European stocks are trading broadly higher, lifted by solid U.S. GDP data that bolsters hopes for a soft landing. Sentiment is further supported by the anticipation of multiple interest rate cuts from the U.S. central bank.

In the commodities market, West Texas Intermediate Crude oil futures slipped $0.27 or 0.34% to $78.01 a barrel. Gold futures are gaining $18.30 or 0.78% at $2,371.80 an ounce, while Silver futures have declined $0.060 or 0.21% to $27.915 an ounce.