Canada's benchmark index looked set to open lower on Monday, pressured by weak commodity prices and the ongoing concern over the Turkish currency crisis.
Action Economics ( AE ) said the Federal Open Market Committee's normalization path will keep the pressure on Turkey, while Draghi and the European Central Bank will continue on cautious footing with a rate hike still far off in the future.
Meanwhile, AE also said crude prices have been trending lower, which is now the most extended retreat oil prices have seen since the March to June period last year. Concerns about the trade spat between the US, China, and the EU are fostering a bearish sentiment, while turmoil in Turkish markets sparked contagion in other emerging or newly developed economies. On the other hand, despite the Turkish crisis and geopolitical concerns over China trade, Russia, and North Korea, gold, for now at least, appears to have lost its safe-haven appeal.
The TSX has shed 90 points on Friday. BMO Capital said global equity markets were under pressure last week, with the TSX in the middle of the pack down 0.6%. The majority of TSX sectors were lower, with consumer discretionary (-3.5%) and consumer staples (-2.3%) leading the way down.
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