Bay Street May Open With Negative Bias

Canadian shares may open with a negative bias Thursday morning, tracking weak global cues amid worries about global economic growth due to the surge in the Delta variant of coronavirus.

Higher commodity prices and strong earnings updates may help limit market's downside.

The Canadian market ended on a weak note on Wednesday amid uncertainty about the pace of global economic rebound due to the continued surge in the Delta variant of coronavirus in several countries rendered the mood cautious. Investors also digested the Bank of Canada's monetary policy announcement.

The benchmark S&P/TSX Composite Index, which advanced to 20,863.20 in early trades, ended the day with a loss of 64.84 points or 0.31% at 20,741.79, slightly off the session's low of 20,730.69.

Dollarama Inc. (DOL.TO) reported second-quarter net earnings of $146.2 million, or $0.48 per diluted common share, compared to $142.5 million, or $0.26 per diluted common share, in the second quarter of the previous financial year.

Empire Company (EMP.A.TO) reported net earnings of $188.5 million in the first quarter of current financial year, compared to $191.9 million in the year-ago quarter.

Descartes Systems Group Inc. (DSG.TO) Wednesday reported second-quarter net income of $23.2 million, up 121% from $10.5 million in the second-quarter of the previous financial year.

Asian stocks ended broadly lower on Thursday on growth worries as the Federal Reserve's Beige Book showed a "downshift" in the U.S. economy last month and the Japanese government said it plans to extend Covid-19 emergency restrictions in Tokyo and other regions.

European stocks are trading weak with growth worries and concerns surrounding regulatory crackdown in China keeping underlying sentiment cautious.

The European Central Bank has kept its monetary policy unchanged but opted to slow down the pace of net asset purchases under its pandemic emergency purchase program.

"Based on a joint assessment of financing conditions and the inflation outlook, the Governing Council judges that favourable financing conditions can be maintained with a moderately lower pace of net asset purchases under the (PEPP) than in the previous two quarters," the ECB said in a statement.

In commodities, West Texas Intermediate Crude oil futures for October are gaining $0.49 or 0.7% at $69.78 a barrel.

Gold futures are up $9.50 or 0.53% at $1,803.00 an ounce, while Silver futures are up $0.244 or 0.1% at $24.300 an ounce.

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