Bay Street Likely To Open On Cautious Note

(RTTNews) - The Canadian stock market is likely to open on a cautious note Monday morning, with investors closely following news about coronavirus spread, the EU Summit, and commodity prices.

Optimism about additional stimulus from central banks and governments is likely to support market at lower levels.

On Friday, the benchmark S&P/TSX Composite Index ended with a gain of 98.98 points or 0.62% at 16,123.48, after hitting a high of 16,142.67. The index, which gained 2.6% in the week, recorded its third weekly gain.

In company news, Pan American Silver Corp. (PAAS.TO) said it is moving its Huaron and Morococha operations in Peru into care and maintenance in response to several workers at the mines recently testing positive for COVID-19.

Asian stocks ended mixed on Monday as EU leaders remained at odds over how to carve up a 750 billion-euro stimulus package designed to help haul Europe out of its deepest recession since World War II. Uncertainty over U.S. stimulus and weak Japanese exports data also rendered the mood cautious.

European stocks have recovered after a weak start, with investors looking ahead to the outcome of the EU summit. Talks between EU leaders, which started on Friday, continued over the weekend and are still on. There is mild optimism that the leaders will eventually agree on the size and composition of a proposed 750 billion euro recovery fund..

In commodities, West Texas Intermediate Crude oil futures are down $0.27 or 0.67% at $40.32 a barrel.

Gold futures for August are rising $6.80 or 0.4% at $1,816.80 an ounce.

Silver futures for September are up $0.316 or 1.6% at $20.080 an ounce, while Copper futures for September are down $0.0025, or 0.1% at $2.9020 per pound.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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