Bay Street Likely To Open On Positive Note

(RTTNews) - Canadian shares are likely to open on a positive note Friday morning, tracking firm European markets. The market is also likely to see some hectic bargain hunting after the terrible setback in the previous session.

The Chinese cabinet's pledge to boost growth with more policy steps is likely to help as well.

Data on Canadian raw materials prices and produer prices for the month of May are due at 8:30 AM ET.

The Canadian market suffered its worst single-session loss in more than two years on Thursday as stocks tumbled amid mounting fears of a possible recession in the foreseeable future due to aggressive policy tightening by central banks.

The benchmark S&P/TSX Composite Index ended with a loss of 607.50 points or 3.1% at 19,004.06, after dropping to a low of 18,952.69.

Asian stocks ended broadly lower on Friday, even as mainland Chinese and Hong Kong markets rallied after China's cabinet pledged more policy steps to help the world's second-largest economy recover from the COVID-19 pandemic.

A cautious undertone prevailed elsewhere on concerns that aggressive monetary tightening by major central banks to cool inflation could lead to a slowdown in global growth.

European stocks are up firmly in positive territory Friday afternoon after China's cabinet vowed to act decisively in ramping up support for the ailing economy. Comments by U.S. President Joe Biden that a U.S. recession isn't inevitable and that the country was "in a stronger position than any nation in the world to overcome inflation," also help underpin sentiment.

In commodities trading, West Texas Intermediate Crude oil futures are down $0.70 or 0.6% at $116.89 a barrel.

Gold futures are up marginally at $1,850.20 an ounce, while Silver futures are down slightly at $21.860 an ounce.