FX.co ★ Bay Street Likely To Open On Negative Note

Canadian and U.S. stock futures are projected to open on a weaker note Friday, influenced by depressed commodity prices and a downturn in European stocks. Investors are particularly attentive to the upcoming Canadian employment report.

Market participants will be absorbing a range of corporate earnings announcements today.

Canadian employment data for October is expected to be released at 8:30 AM ET. In September, employment rose by 46,700, marking the highest increase in five months, following an increase of 22,100 in August. The unemployment rate in Canada decreased to 6.5% in September, down from August's 34-month high of 6.6%.

Data concerning average hourly wages for October will also be released at 8:30 AM ET. In September, the average hourly wage in Canada slightly increased to $36.54.

In corporate earnings, Telus Corporation (T.TO) posted a net income of $257 million for the quarter ending September 30, 2024, an increase of 87.6% over the previous year’s $137 million for the same period. Onex Corporation (ONEX.TO) recorded third-quarter net earnings of $127 million, compared to $256 million from the prior year. Docebo Inc (DCBO.TO) reported a net income of $5.0 million, or $0.16 per share, for the current third quarter, compared to $4.0 million, or $0.12 per share, in the same quarter last year. Brookfield Business Partners (BBU.UN.TO) announced a net income of $301 million for the three months ending September 30, 2024, a turnaround from the net loss of $44 million in the equivalent quarter of the preceding year.

Canadian markets concluded Thursday with a robust performance, driven by an upward trajectory that spanned two previous sessions. The S&P/TSX Composite Index climbed 208.48 points, or 0.9%, culminating in a record high closing of 24,845.93.

This sustained strength on Bay Street occurred as the Federal Reserve made its anticipated decision to lower interest rates by a quarter percentage point.

Asian equity markets displayed a mixed performance on Friday, reacting to interest rate cuts by a quarter point from both the Bank of England and the U.S. Federal Reserve. Attention shifted later to potential stimulus measures from China following the conclusion of the Standing Committee of the National People's Congress meeting.

European stocks declined noticeably on Friday after China's National People's Congress approved the State Council's proposal to expand the local government debt limit by $838 billion after a week-long session. Expectations were dampened since the anticipated stimulus was less comprehensive and immediate than initially expected.

In the commodities sector, West Texas Intermediate Crude oil futures are trading at $71.52 per barrel, down by $0.84 or 1.16%. Gold futures have decreased by $9.10, or 0.33%, to $2,696.70 an ounce, while silver futures have dropped by $0.260, or 0.82%, to $31.595 an ounce.