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Bay Street Likely To Open With Negative Gap

Weak commodity prices and weak European markets point to a negative start for the Canadian stock market on Thursday.

Worries about inflation and further interest rate hikes are likely to weigh on sentiment.

In Canadian earnings news, Canadian Tire Corporation Limited (CTC.TO) reported diluted earnings per share of $3.03 for the first quarter of 2022, up 23% over the year-ago period.

Crescent Point Energy (CPG.TO) reported adjusted net earnings of $240.9 million for the quarter ended March 2022, compared with $95.1 million a year ago.

Primo Water Corporation (PRMW.TO) reported adjusted net income and adjusted net income per diluted share of $14 million and $0.09, respectively, for the first quarter, compared to adjusted net income and adjusted net income per diluted share of $9 million and $0.06, respectively, in the corresponding quarter last year.

First Majestic Silver Corporation (FR.TO) reported net earnings for $7.3 million for the first quarter of 2022, compared with $1.9 million a year ago.

Docebo Inc (DCBO.TO) reported net loss of $7.0 million, or $0.21 per share, in the first quarter of 2022, compared to net loss of $5.6 million, or $0.17 per share for the comparative period in the prior year.

The Canadian market ended lower on Wednesday, extending losses to a fifth straight day. The benchmark S&P/TSX Composite Index, which fell nearly 400 points to 19,792.79 from a high of 20,189.43, ended the session with a loss of 52.81 points or 0.27% at 19,837.25.

Asian stocks plummeted on Thursday and the dollar held near a two-decade high after the latest U.S. inflation data strengthened the Fed's resolve to continue hiking rates by 50 basis points for at least three meetings.

European stocks are plunging sharply with the latest U.S. inflation data suggesting that Fed officials are likely to stick with their approach of raising rates by a half point at each of their next two-three meetings to tame high-flying inflation. The major averages FTSE 100, DAX, CAC 40 and Stoxx 600 are down 2 to 2.5%.

In commodities trading, West Texas Intermediate Crude oil futures are down $2.02 or 1.9% at $103.69 a barrel.

Gold futures are down $10.10 or 0.5% at $1,843.60 an ounce, while Silver futures are lower by $0.670 or 3.1% at $20.905 an ounce.

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