Bay Street Likely To Open Higher

Canadian shares may open higher Friday morning, tracking positive lead from European markets, where the mood is fairly upbeat thanks to some buoyant earnings updates from top name companies.

Sluggish commodity prices may weigh a bit and limit market's upside.

Data on retails sales in Canada for the month of May is due out at 8:30 AM ET. Retail sales had dropped by 5.7% in April compared to a month earlier, and above forecasts of a 5% decline.

The Canadian market ended slightly weak on Thursday after a lackluster performance amid a lack of positive cues and on worries about rising delta variant of the coronavirus in several parts across the world. The benchmark S&P/TSX Composite Index ended down by 12.53 points or 0.06% at 20,097.52 after moving in a narrow range between 20,040.17 and 20,117.33.

Air Canada (AC.TO) reported net loss of $1.17 billion or $3.31 per diluted share in the second quarter, compared with a loss of $1.75 billion or $6.44 per share a year earlier.

Magna International Inc (MG.TO) announced on Thursday that it signed a deal valued at about $3.8 billion to buy automotive technology firm Veoneer Inc.

Asian stocks closed on a mixed note on Friday despite strong earnings from U.S. companies and dovish signals from the European Central Bank.

Chinese and Hong Kong shares fell after reports emerged that Beijing is planning hefty penalties on Didi Global for listing its shares in the U.S. in June.

European stocks are notably higher Friday afternoon, extending gains after a firm start thanks to a slew of upbeat earnings updates and dovish comments from the European Central Bank.

In commodities, West Texas Intermediate Crude oil futures for September are down marginally at $71.85 a barrel.

Gold futures are down $9.00 or 0.5% at $1,796.40 an ounce, while Silver futures are down $0.141 or 0.56% at $25.240 an ounce.

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