Markets

Bay Street Seen Opening Sharply Lower

(RTTNews) - Canadian shares are likely to open notably lower Monday morning amid rising concerns over spikes in coronavirus cases in Europe and growing uncertainty about the pace of global economic recovery.

Markets in Asia closed weak today and the major European markets are down with sharp losses. The U.S. index futures are plunging as well.

A surge in coronavirus cases in Europe has prompted renewed lockdown measures in some countries in the region. An update from the U.S. Centers for Disease Control and Prevention (CDC) that coronavirus can spread through air is causing concern.

Concerns over tensions between the U.S. and China, and a lack of fresh stimulus from the government are also likely to force investors to stay cautious.

The Canadian market ended lower on Friday, extending losses to a third straight session. The benchmark S&P/TSX Composite Index down 47.75 points or 0.29% at 16,198.97, despite hitting a high of 16,310.03 in early trades.

In company news, CI Financial Corp (CIX.TO) announced that it has signed a deal to acquire U.S. investment adviser Bowling Portfolio Management LLC. The firm based in Cincinnati has US$450 million in assets under management.

In economic news, new house prices in Canada were up 0.5% over a month earlier in August 2020, following a 0.4% increase in the previous month. It was the fourth consecutive rise in new house prices and the largest since May 2017.

The Dow futures are down as much as 2.1%, the S&P futures are lower by 1.7# and the Nasdaq futures are sliding 1.6%.

European stocks plunging sharply today, hitting two-week lows in the process. Among the major European indices, pan European Stoxx 600 is tumbling 2.7%, the U.K.'s FTSE is sliding 3.25%, Germany's DAX is falling 3.1% and France's CAC 40 is down 3%.

Crude oil prices are falling amid rising concerns about outlook for energy demand and the bullion market is weak as well.

West Texas Intermediate Crude oil futures are down $0.78 or nearly 2% at $40.33 a barrel. Gold futures are falling $22.80 or 1.16% at $1,939.30 an ounce.

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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