Bay Street Likely To Open Higher

(RTTNews) - Canadian shares look headed for a positive start Friday morning, tracking firm crude oil prices and gains in European markets. Encouraging earnings updates from Apple Inc., is also likely to aid sentiment.

Investors will also be reacting to a slew of earnings updates from Canadian and U.S. companies, and U.S. non-farm payroll data for April.

TC Energy Corp (TRP.TO) reported first-quarter net income of $1.2 billion or $1.16 per common share compared to $1.3 billion or $1.29 per common share in first quarter 2023 TransAlta Corporation (TA.TO) reported net earnings of $222 million for the first quarter of 2024, compared to $294 million for the same period in 2023.

Brookfield Business Partners (BBU.UN.TO) reported net income of $48 million for the three months ended March 31, 2024, compared to net income of $74 million in the prior period.

On the economic front, data on manufacturing and service sector acitivty in Canada for the month of April is due at 9:30 AM ET.

The Canadian market edged higher on Thursday, as comments from Bank of India Governor Tiff Macklem that the central bank is getting closer to start reducing interest rates aided sentiment.

Fed Chair Jerome Powell's comments that the next rate move from the central bank will most likely be an interest rate reduction also contributed to the positive mood in the market.

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

Asian stocks rose broadly on Friday, with tech shares leading the charge following Apple's quarterly earnings beat and massive buyback program. Regional trading volumes were thin due to market holidays in mainland China and Japan.

European stocks are up in positive territory, buoyed by comments from European Central Bank policymaker Yannis Stournaras that he sees three rate cuts in 2024.

A slew of encouraging earnings updates and signs of improvement in U.K. services growth also help underpin investor sentiment.

In commodities, West Texas Intermediate Crude oil futures are up $0.49 or 0.62% at $79.44 a barrel.

Gold futures are down $3.70 or 0.17% at $2,305.90 an ounce, while Silver futures are lower by $0.159 or 0.59% at $26.670 an ounce.