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Canadian Shares May Open Flat

Canadian shares may open on a flat or slightly weak note Friday morning, tracking sluggish commodity prices.

However, with U.S. index futures trending higher, a rebound looks likely on Wall Street and this could help lift sentiment in the Canadian market.

Worries about global growth amid continued surge in coronavirus cases and likely delay in coronavirus vaccines may weigh on sentiment.

Data released by Statistics Canada a little while ago showed Canadian industries operated at 70.3% of their production capacity in the second quarter of 2020, down from 79.8% in the previous quarter. Expectations were for a capacity utilization of 70.2%. The 70.3% utilization was the lowest rate since the first quarter of 1987.

On Thursday, the benchmark S&P/TSX Composite Index, which advanced to 16,431.59 in early trades, ended down 198.28 points or 1.21% at 16,185.32, after hitting a low of 16,153.18.

Asian stocks ended mostly higher on Friday. European stocks are turning in a mixed performance amid continued concerns over the impasse on Brexit negotiations and worries about economic growth due to surging number of coronavirus cases.

West Texas Crude oil futures for October are down $0.24 or 0.64% at $37.08 a barrel.

Gold futures for December are lower by $11.00 or 0.55% at $1,953.30 an ounce. Silver futures are down $0.336 or 1.23% at $26.955 an ounce, while Copper futures are up $0.0410 or 1.37% at $3.0280 per pound.

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