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Bay Street Seen Opening Notably Lower On Recession Fears

Sharply lower Canadian and U.S. futures, falling commodity prices and a sell-off in Asian and European markets amid mounting fears of a recession, point to a gap down opening for Canadian shares on Friday.

In Canadian company news, Bausch Health Companies Inc. (BHC.TO) and Glenmark Specialty S.A., a subsidiary of Glenmark Pharmaceuticals Ltd., announced Friday that RYALTRIS (olopatadine hydrochloride and mometasone furoate nasal spray) has been approved by Health Canada for the symptomatic treatment of moderate to severe seasonal allergic rhinitis (SAR) and associated ocular symptoms in adults, adolescents, and children aged 6 years and older.

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

A preliminary report on manufacturing sales during the month of August is also due at 8:30 AM ET.

After opening on a positive note, the Canadian market slipped and stayed weak on Thursday amid concerns about global growth after central banks, including the Federal Reserve, raised policy rates sharply to combat inflation.

The benchmark S&P/TSX Composite Index ended with a loss of 181.86 points or 0.95% at 19,002.68, extending losses to a third straight session.

Asian stocks closed weak, extending losses for a third day running, amid concerns about elevated inflation and slowing global growth.

Chinese shares fell notably on growth concerns, with Nomura cutting its China 2023 annual growth forecast further to 4.3% from 5.1% in light of ongoing COVID woes. Japanese markets were closed for Autumnal Equinox holiday.

European stocks are down sharply amid concerns about a possible global recession. S&P Global's Eurozone manufacturing purchasing managers' index fell to 48.5 in September from 49.6 a month earlier, according to preliminary estimates released earlier in the day.

Also, the downturn in British businesses deepened this month because of soaring costs and faltering demand. The S&P Global/CIPS flash Composite Purchasing Managers' Index (PMI) fell to 48.4 from 49.6 in August.

In commodities trading, West Texas Intermediate Crude oil futures are down $2.74 or 3.28% at $80.75 a barrel.

Gold futures are down $28.00 or 1.67% at $1,653.10 an ounce, while Silver futures are lower by $0.547 or 2.79% at $19.070 an ounce.

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