Bay Street Likely To See Wild Swings
(RTTNews) - Stock prices may see wild swings in the Canadian market on Monday, with investors weighing the likely impact of the sharp surge in crude oil prices on the global economy.
Also, with the Federal Reserve set to announce its monetary policy on Wednesday, investors will be looking for directional cues.
The U.S. government blamed Iran for attacks on the Saudi Arabian oil plants, and President Donald Trump has even hinted at the possibility of a military strike on the Islamic nation.
Higher crude oil price may trigger some strong buying at a few key energy counters. But fears about the likely impact of higher oil prices on global growth may prove a dampener of sorts.
On Friday, the benchmark S&P/TSX Composite Index ended up 39.14 points, or 0.24%, at 16,682.42, after scaling a new record intraday high of 16,756.11.
In company news, B2Gold Corp. (BTO.TO) announced that the the company and AngloGold Ashanti Limited have agreed B2Gold will sole fund the next $13.9 million of expenditures on the Gramalote Project, following which B2Gold will hold a 50% ownership interest in the joint venture. B2Gold currently holds a 48.3% interest.
CGI Group Inc. (GIB.A.TO) announced today that it has been awarded contracts worth more than C$27 million to renew and extend CGI's RFS360 banking services with Canadian credit unions in the Credit Union Services Association in Ontario and with credit unions based in British Columbia.
Asian markets turned in a mixed performance on Monday as oil prices rose sharply and investors remained focused on the upcoming Fed meeting for directional cues. Disappointing industrial output data from China weighed as well.
European markets were drifting lower on weak Chinese industrial output data and geopolitical tensions after attacks on Saudi Arabia's oil facilities.
In commodities, crude oil futures for October vaulted to $63.34 a barrel, before declining to $60.30, still down nearly 10% from previous close.
Gold futures for December were up $12.10, or 0.81%, at $1,511.60 an ounce.
Silver futures for December were rising $0.346, or 1.97%, at $17.915 an ounce, while Copper futures for December were down $0.0025, or 0.9%, at $1.6745 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.