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Bay Street Likely To Open With Negative Bias

Canadian shares may open weak Friday morning, tracking weakness in European markets and sluggish commodity prices.

Data on Canadian GDP is likely to make an impact on price movements. Worries about the spread of the delta variant of the coronavirus, and regulatory actions in China are likely to weigh.

Investors will also be reacting to a slew of earnings announcements from top name Canadian companies.

The Canadian stock market ended on a firm note on Thursday, due largely to strong gains in the materials section after bullion prices rose sharply. Fairly strong earnings updates and dovish comments from the Federal Reserve about interest rates further underpinned sentiment.

The benchmark S&P/TSX Composite Index, which rose to 20,363.04, less than 20 points shy of its record high of 20,381.70, ended the session at 20,311.78, gaining 81.38 points or 0.4%.

SNC-Lavalin Group Inc. (SNC.TO) reported second-quarter net income of C$45.72 million, compared to last year's loss of C$111.65 million.
Adjusted net income attributable to SNC-Lavalin shareholders was C$56.8 million or C$0.32 per share, compared to C$28.3 million or C$0.16 per share a year ago. Ian Edwards, President and CEO of SNC-Lavalin said the group is on track to meet its 2021 outlook expectations.

Telus Corp. (T.TO) reported second-quarter net income of $335 million, up 15.5% over a net quarter of $290 million recorded in the second quarter of the previous year.

George Weston Ltd. (WN.TO) reported adjusted net earnings of $272 million for the second quarter, an increase of $133 million from the year-ago quarter, primarily due to the improvement in the underlying operating performance of Lobalaw.

Restaurant Brands International Inc. (QSR.TO) reported adjusted net income of $358 million for the second quarter of this financial year, compared to net income of $154 million a year ago.

Asian stocks ended lower on Friday, as concerns about the fast-spreading Delta variant and regulatory actions in China outweighed optimism around corporate earnings.

European stocks are exhibiting weighed down by disappointing earnings from Amazon and fresh losses in Chinese markets.

In commodities, West Texas Intermediate Crude oil futures for September are down $0.21 or 0.28% at $73.41 a barrel.

Gold futures are down marginally at $1,831,00 an ounce, while Silver futures are down $0.0227 or 0.88% at $25.555 an ounce.

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