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Bay Street Likely To Open With Negative Bias

Canadian shares are likely to open with a negative bias Friday morning amid concerns about U.S.-China tensions, as China looks to tighten control over Hong Kong by imposing a security law.

Weak data on Canadian GDP and industrial product prices are expected to weigh as well.

The Canadian economy shrank 2.1% on quarter in the first quarter of this year, after expanding 0.1% in the previous period. It was the sharpest contraction since the first quarter of 2009.

On annualized basis, GDP growth decreased to -8.2% in the first quarter of 2020 from 0.6% in the fourth quarter of 2019.

The industrial product price Index in Canada declined 2.3% month-over-month in April, after falling 0.9% in the previous month. It was the fourth consecutive monthly decrease and the largest decline since December 2008

The market ended flat on Thursday, after a somewhat volatile session. The S&P/TSX Composite Index ended down 9.30 points, or 0.06%, at 15,262.73.

In company news, Canopy Growth Corp. (WEED.TO) reported a loss of $1.3 billion for the fourth quarter ended March 31, 2020.

The company said it will no longer strive to be the first to every market, but rather focus on select markets where it can become a leader in consumer insights and product development. The company reported a loss of $3.72 per share for the quarter, compared with a loss of $379.5 million or $1.10 per share in the same quarter a year earlier.

Asian markets ended mixed on Friday amid uncertainty about economic recovery due to the rift between the U.S. and China over the latter's move to impose a national security law for Hong Kong.

European stocks are exhibiting weakness with investors largely staying cautious ahead of Trump's press conference, where he is expected to announce new U.S. policies on China.

Meanwhile, West Texas Intermediate Crude oil futures are down more than 2.5%, at $32.95 a barrel.

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