Bay Street Seen Opening On Cautious Note

Canadian shares are likely to exhibit a mixed trend on Friday with investors reacting to news about another daily surge in new coronavirus cases in the U.S., and tracking European markets where stocks are up on stimulus hopes.

The market will also react to the Federal Reserve's report after the stress tests on U.S. Banks. The Fed said the biggest banks in the country are healthy but could suffer up to $700 billion in losses on soured loans if the economy continues to languish. The Fed ordered the banks to cap dividend payments and suspend share buyback programs.

Quarterly earnings announcements and other corporate news may provide direction and the activity is likely to remain stock specific.

On Thursday, stocks recovered after a weak start and ended on firm note on stimulus hopes. The benchmark S&P/TSX Composite Index ended with a gain of 151.76 points or 0.99% at 15,446.14, recovering from a low of 15,178.35.

Baytex Energy Corp. (BTE.TO) said Thursday that it would bring back on line some of the wells it had shut down in April and May to avoid selling into an oversupplied market.

The company said it has restored about 20,000 barrels per day of the 25,000 bpd it had previously curtailed, thanks to improving profitability, and added that about 5,000 bpd of heavy oil production is expected to remain off-line in the second half of the year.

Corus Entertainment Inc. (CJR.B.TO) reported net loss of $752.3 million ($3.61 loss per share basic) for the third quarter and $655.6 million ($3.12 loss per share basic) year-to-date, which includes non-cash impairment charges related to broadcast licenses and goodwill of $786.8 million. Corus had posted a net profit of $66.8 million or $0.31 per share in the third quarter of the previous financial year.

Asian stocks closed higher on Friday as investors reacted positively to easing of bank rules by U.S. regulators that would free up billions of capital.

European stocks are notably higher with investors indulging in some brisk buying on hopes the central banks and government will come up with more stimulus measures to help limit the economic impact of the ongoing coronavirus pandemic.

In commodities, West Texas Intermediate crude oil futures for August are down $0.06 or 0.016% at $38.66 a barrel.

Gold futures for August are up $2.10 or 0.1% at $1,772.70 an ounce. Silver futures for July are gaining $0.080 or 0.45% at $17.975 an ounce, while Copper futures for July are up $0.0340 or 1.28% at $2.6970 per pound.

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