Markets

TSX May Open Lower As Commodities Dive

Canada's benchmark index looked set to open lower on Monday, weighed down by falling oil prices .

Stock futures for the March quarter on the S&P TSX index were down 0.1% recently.

Action Economics said NYMEX crude slipped to intra day lows of US$61.48, coming from overnight highs of $62.33. Prices rallied on Friday following the strong U.S. jobs report, on expectations for increased oil demand. U.S. oil rigs in operation fell by 4 last week to 796, according to Baker-Hughes, though U.S. production remains at record levels, near 10.4 million barrels per day, which should limit oil price gains. Monthly reports from OPEC and the IEA are due this week, and will be watched closely for fresh data on production and demand.

Meanwhile, BMO (BMO.TO) said for equity investors, the TSX faces the reality of softer growth, less-than-friendly relative policy dynamics (be it on the fiscal or trade fronts), and an increasingly challenged domestic oil market. So far this year, the index hasn't shown any sign of reversing its underperforming path, down 3.9% versus a 4.2% gain in the S&P 500--9 out of 10 major sectors, excluding technology, are in the red this year.

The TSX gained 39 points on Friday, paced by materials and industrials.

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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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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