Canadian Stock Market Outlook
Futures linked to Canada’s leading stock exchange rose on Friday, signaling potential continuity in recent gains fueled by easing global trade tensions. As of 13:34 Turkey time, the S&P/TSX 60 index futures were up 2 points, marking a 0.1% increase. The Toronto Stock Exchange’s S&P/TSX composite index had risen by 205.03 points or 0.8% on Thursday, surpassing its previous record high set on January 30.
The market’s confidence is supported by several factors including investment agreements announced during US President Donald Trump’s Gulf visit, a decrease in US inflation data, and a trade truce between the US and China.
US Stock Futures Show Slight Rise
US stock index futures experienced a slight uptick during a calm session on Friday evening, stabilizing after a mixed performance on Wall Street. This followed moderate economic data that increased expectations of further interest rate cuts this year. By 13:39 Turkish time, Dow futures had risen by 152 points, a 0.4% increase. Meanwhile, S&P 500 futures gained 16 points, or 0.3%, and Nasdaq 100 futures advanced by 50 points, or 0.2%.
The strong rebound of Wall Street averages was bolstered by an agreement between US and Chinese officials on a 90-day tariff truce. This deal alleviated investor fears of escalating global trade tensions and their potential economic impact.
Barclays Revises US Economic Forecasts
Barclays has adjusted its US economic forecasts upwards in light of the trade agreement between Washington and Beijing. The bank now anticipates that the US economy will not enter a recession this year. In a note published late Thursday, Barclays projected US economic growth at 0.5% for this year and 1.6% for the next, revising its previous forecasts of -0.3% and 1.5%, respectively.
However, recent US data revealed an unexpected decline in producer prices in April alongside weak retail sales. The PPI figures, following moderate consumer price data earlier in the week, have reinforced expectations that the Federal Reserve will implement at least two interest rate cuts this year. The economic calendar for Friday is relatively light, with the preliminary reading of the University of Michigan’s consumer confidence survey being a key focus.
Oil Market Trends
Oil prices have remained largely stable and are poised for a second consecutive weekly gain. As of 13:47 Turkish time, Brent futures were up 0.4%, priced at $64.81 per barrel, while US West Texas crude futures rose 0.4% to $61.85 per barrel. Both benchmarks are on track for weekly gains of around 1%, largely due to the rally earlier in the week following the US-China trade truce announcement. However, these gains are tempered by the increasing likelihood of an Iran nuclear deal, which could lead to a boost in global crude oil supplies.
Gold Market Performance
Gold prices have declined as the easing of trade tensions between the US and China has heightened risk appetite, reducing the demand for gold as a safe haven. Consequently, gold is experiencing significant weekly losses. Investors have been cashing in on high profits from the precious metal, which has sharply fallen from recent record highs. The yellow metal has also been pressured by the strengthening US dollar and rising US Treasury yields this week.
As of 13:49 Turkey time, spot gold had fallen 1.5% to $3,192.33 an ounce, while gold for June delivery decreased by 1.0% to $3,195.91 an ounce. Spot prices have dropped about 3.2% on a weekly basis, marking the steepest decline since early November 2024.
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