Plus   Neg

Bay Street Headed For Weak Start

Falling crude oil prices and weak futures amid rising concerns about U.S.-China trade conflict point to a gap down opening for the Canadian stock market on Wednesday.

Trade worries have increased after U.S. President Donald Trump said that he was holding up a trade deal with China and had no interest in moving ahead unless Beijing agrees to four or five "major points" that he did not specify.

Investors will also be reacting to U.S. consumer price inflation data.

Energy stocks are likely to struggle after crude oil prices plunged sharply this morning. The weekly inventory data from U.S. Energy Information Administration is due at 10:30 AM ET.

On Tuesday, the benchmark S&P/TSX Composite Index ended up 32.50 points, or 0.2%, at 16,248.76. The index scaled a low of 16,228.24 and a high of 16,301.97 in the session.

In company news, Roots Corporation (ROOT.TO) reported adjusted net loss of $0.17 per share in the first quarter, compared to adjusted net loss of $0.11 per share in the year-ago quarter. However, the company said it remains on track to achieve its fiscal 2019 financial target of adjusted net income of between $20 million and $24 million.

The Green Organic Dutchman Holdings Ltd. (TGOD.TO) announced that it has entered into a multi-year agreement with Neptune Wellness Solutions Inc. (NEPT.TO) for extraction, formulation and packaging services.

Asian markets ended lower on Wednesday as trade uncertainties weighed on sentiment and prompted investors to refrain from any significant buying. Weak inflation data out of China and a deterioration in Australia's consumer confidence too rendered the mood cautious.

European stocks were drifting lower on trade worries and growth concerns.

In commodities, crude oil futures for July were down $1.46, or 2.74%, at $51.81 a barrel.

Gold futures for August were gaining $7.80, or 0.57$, at $1,339.00 an ounce.

Silver futures for July were up $0.045, or 0.31%, at $14.785 an ounce, while Copper futures for July were declining $0.0240, or 0.9%, at $2.6475 per pound.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT