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Bay Street Likely To Open On Negative Note

Canadian stocks are likely to open lower Friday morning, tracking weakness in European markets and weak commodity prices.

Worries about growth due to rising coronavirus cases and lockdowns in several places may also weigh on stocks.

Optimism about larger economic stimulus from the Joe Biden administration may help limit market's downside.

On the economic front, data on Canadian retail sales in the month of November is due out at 8:30 AM ET.

The Energy Information Administration's crude inventory data for the week ended January 16th, which is due out at 10:30 AM ET, could set the trend for energy shares.

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On Thursday, the Canadian market ended weak, snapping a three-day winning streak, due to profit taking and a lack of positive triggers. The benchmark S&P/TSX Composite Index ended with a loss of 98.71 points or 0.55% at 17,916.20, after scaling a low of 17,870.25 and a high of 18,018.30 intraday.

Asian stocks ended broadly lower on Friday as investors chose to take profits, cashing in recent gains. Optimism about ramped up efforts to combat the coronavirus and expectations for more stimulus under the new Biden administration pushed up stock prices in recent sessions.

European markets are notably lower, weighed down by disappointing data on euro area manufacturing and services sector activity, and rising concerns about spikes in coronavirus cases and tighter lockdown restrictions in several places across the continent.

In commodities, West Texas Intermediate Crude oil futures for March are down $1.37 or 2.58% at $51.76 a barrel.

Gold futures are sliding $24.00 or 1.27% at $1,841.90, while Silver futures are down $0.637 or 2.47% at $25.217 an ounce.

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