Bay Street Likely To Open Weak

(RTTNews) - Lower Canadian and U.S. futures amid renewed concerns over the Middle East conflict and rising oil prices point to a weak opening on Bay Street Friday morning. A lack of concrete outcome from the U.S.-China summit in Beijing is also likely to hurt sentiment.

Concerns about Hormuz Strait linger despite Iran's Revolutionary Guards' claim that around 30 vessels had crossed the strait since Wednesday evening.

U.S. President Donald Trump said he will not be much more patient with Tehran. Trump's tougher stance on the Middle East issue has raised fears that the US could resume strikes on Iran.

Oil prices climbed higher, triggering inflation concerns and fears of monetary tightening by central banks.

West Texas Intermediate crude oil futures are up $3.50 or 3.45% at $104.67 a barrel.

Gold futures are down $130.00 or 2.78% at $4,555.30 an ounce, while Silver futures are down $6.748 or 7.91% at $78.580 an ounce.

In economic news, Canadian housing starts rose to 279,300 units in April from 239,700 units in March, data from Canada Mortgage and Housing Corporation showed.

The Canadian market closed higher on Thursday as signals of Chinese intervention for the resolution to the Strait of Hormuz crisis emerged in the backdrop of a U.S.-China summit while the strait remains blocked for oil and energy transit.

The benchmark S&P/TSX Composite Index settled at 34,268.27, up by 226.84 points or 0.67%.

Asian stocks declined on Friday after U.S. Treasury yields hit one-year highs, prompting traders to increase their bets on a Federal Reserve rate hike this year. Rising oil prices dented sentiment as attacks on one ship and the seizure of another around the Strait of Hormuz stoked concerns about energy supplies.

The major European markets are down sharply amid concerns about Middle East tensions, and disappointment over a lack of concrete outcome so far from the U.S.-China summit in Beijing.