FX.co ★ Bay Street Likely To Open On Subdued Note

Friday morning signals a tepid start for Canadian stocks, influenced by lower futures and weaknesses in European markets. However, the firmness in metal prices might stimulate robust buying in the materials sector, potentially mitigating some market declines.

Economically, Statistics Canada reports an uptick in Canada's manufacturing sales, which rose by 1.2% in April, reversing a 2.1% dip from the previous month. Additionally, wholesale sales surged by 2.4% in April, coming from a decline of 1.1% in March.

In corporate news, Loblaw Companies Ltd. (L.TO), a prominent Canadian retailer, announced that it has initiated an automatic share purchase plan with a broker to repurchase its shares under a previously declared normal course issuer bid. Earlier, Loblaw received approval from the Toronto Stock Exchange to repurchase up to 15.336 million shares, equating to roughly 5% of its 306.737 million shares outstanding as of April 22.

On Thursday, Canadian stocks faced sharp declines due to diminished expectations of multiple rate cuts from the Federal Reserve this year and weakening commodity prices, which cast a bearish shadow over the market. The S&P/TSX Composite Index closed 263.44 points lower, or 1.2% down, settling at 21,698.11, just above the session low of 21,680.06.

Asian markets exhibited mixed performances on Friday after Beijing condemned EU tariffs on Chinese electric vehicles as protectionist, hinting at retaliatory actions in an escalating trade conflict. Indications of slowing U.S. inflation somewhat cushioned regional losses.

European markets are experiencing notable declines, continuing the loss streak from the previous session amid ongoing political uncertainties as election campaigns in the U.K. and France persist. In France, political turmoil deepened after the finance chief warned that a new left-wing coalition could lead the country out of the European Union. Meanwhile, Nigel Farage's Reform UK has overtaken Prime Minister Rishi Sunak's Conservatives in a YouGov poll.

In the commodities market, West Texas Intermediate Crude oil futures have edged up by $0.18, or 0.23%, to $78.80 per barrel. Gold futures are advancing by $30.60, or 1.32%, reaching $2,348.60 an ounce, while Silver futures have risen by $0.234, or 0.81%, to $29.300 an ounce.