Bay Street May Open With Negative Bias

(RTTNews) - The Canadian market may open with a negative bias Friday morning, tracking weak global stocks and lower oil and silver prices.

Slightly fading hopes about an interest rate cut by the Federal Reserve next month, and renewed concerns about valuations of AI-related stocks are likely to weigh on stocks.

On the economic front, final data from Statistics Canada showed retail sales in Canada decreased 0.7% in September. Retail sales increased 3.4% in September of 2025 over the same month in the previous year.

The Canadian House Price Index dropped to -0.4% in October from -0.2% in September, another data from Statistics Canada showed.

The Canadian market ended on a weak note on Thursday, with stocks reversing early gains. Nvidia's stronger than expected third quarter earnings and fourth quarter guidance had lifted the market early on, but investors chose to take profits as the day progressed.

The benchmark S&P/TSX Composite Index settled with a loss of 371.86 points or 1.23% at 29,906.55, sliding from the day's high of 39,632.84.

Asian stocks closed lower on Friday as a brief Nvidia-led rally faded and mixed U.S. jobs data left markets uncertain whether the Federal Reserve will cut rates in December.

Chinese markets joined a global sell-off, with the benchmark Shanghai Composite index falling 2.45%. Hong Kong's Hang Seng index finished 2.38% lower, extending losses to a sixth straight session.

Japanese markets lost ground amid concerns over stretched valuations and AI investment profitability. Concerns about Japan's fiscal situation also weighed on markets after the cabinet approved a massive economic stimulus plan.

The major European markets are down in negative territory amid some weak regional economic data, and renewed concerns over AI-bubble, and uncertainty about Fed interest rate moves.

West Texas Intermediate Crude oil futures are down $0.49 or 0.8% at $58.51 a barrel.

Gold futures are up $3.00 or 0.07% at 4,063.00 an ounce, while Silver futures are down $1.141 or 2.27% at $49.160 an ounce.