Bay Street Headed For Weak Start

(RTTNews) - Lower Canadian and U.S. futures amid worries about the health of US regional banks, and lingering concerns about U.S.-China trade tensions point to a weak start for the Canadian market on Friday.

Zions Bancorporation, a Utah-based lender, said on Thursday that it would write off $50m on two loans, while Phoenix-headquartered Western Alliance said it had started legal proceedings over a bad loan said to be worth $100m.

Absence of economic data from the U.S. due to the ongoing government shutdown is also likely to render the mood cautious.

In commodities, oil prices are down and silver prices have dropped as well, while gold futures are surging higher.

The Canadian market settled lower on Thursday, giving back ground as investors resorted to profit taking from the successive gains of the past two days.

The benchmark S&P/TSX Composite Index closed at 30,458.80, down by 178.32 points, or 0.58%.

Asian stocks closed weak on Friday as heightened concerns over U.S. banks' loan portfolios added to worries about the ongoing U.S. government shutdown and escalating Sino-U.S. trade tensions.

Chinese and Hong Kong shares fell sharply after reports emerged that the U.S. may impose up to 500 percent tariffs on China over rare earth limits and Russian oil, risking global trade turmoil.

The major European markets are down in negative territory today, with financials stocks reeling under a severe bout of selling pressure amid concerns about the health of U.S. regional banks.

In commodities trading, West Texas Intermediate Crude oil futures are down $0.56 or 0.97% at $56.90 a barrel.

Gold futures are gaining $51.50 or 1.19% at $4,356.10 an ounce, while Silver futures are down $0.361 or 0.68% at $52.935 an ounce.