FX.co ★ Bay Street Looks Headed For Weak Start

The outlook for the Canadian market on Friday appears pessimistic, driven by declining U.S. and Canadian futures, a sell-off in European markets, and weak crude oil prices. Concerns over a potential U.S. government shutdown and tariff increases are likely to add to the market's unease.

Key economic indicators, such as Canadian retail sales data and the U.S. Personal Consumption Expenditure (PCE) reading, are anticipated to heavily influence market sentiment. Canadian retail sales data for October is set for release at 8:30 AM ET. Additionally, the U.S. PCE data, which the Federal Reserve regards as a key inflation measure, is scheduled for this morning. These figures are expected to inform the Federal Reserve's future interest rate decisions under the new Trump administration.

Projections suggest that Canadian retail sales increased by 0.7% from the previous month in October. For September, retail sales in Canada rose by 0.8% year-on-year, following a 1.4% increase in August. September also saw a monthly rise of 0.4% in retail sales, revised upward from an initial estimate of 0.3%.

In corporate news, Africa Energy Corp., a Canadian oil and gas exploration company, announced it has entered a non-binding agreement with Arostyle Investments Proprietary Ltd. to restructure their joint investment in Main Street 1549 Proprietary Ltd.

On Thursday, the Canadian market experienced its sixth consecutive decline, pressured by tariff hike fears, hawkish comments from the Federal Reserve, and concerns about economic slowdown, along with rising bond yields. The S&P/TSX Composite Index ended the day down 143.06 points, or 0.58%, at 24,413.94, continuing its fall from a historic high of 25,842.20 reached in the second week of September.

In Asia, stocks delivered mixed results on Friday amid ongoing uncertainty about the Federal Reserve's rate path and a looming U.S. government shutdown, following President-elect Donald Trump's sudden rejection of a bipartisan plan.

European stocks have fallen sharply due to fears of a U.S. government shutdown and Trump's warning of potential tariffs on the European Union if the bloc does not address its growing trade deficit with the U.S. by increasing oil and gas purchases. Additionally, weaker-than-expected retail sales data from the UK is exerting downward pressure on the market.

In the commodities sector, West Texas Intermediate Crude oil futures have dipped by $0.66, or 0.95%, to $68.72 a barrel. Conversely, gold futures have risen by $12.00, or 0.47%, to $2,620.10 an ounce, while silver futures have decreased by $0.126, or 0.43%, to $29.285 an ounce.