Canadian Market May Open With Negative Bias
(RTTNews) - Stocks may open with a negative bias on Bay Street Monday morning amid renewed fears about inflation and interest rates as oil prices are up sharply following the U.S. launching fresh strikes against Iran and the latter responding by attacking Gulf Arab states.
Energy stocks may move up, riding on higher oil prices. Materials stocks are likely to find the going a bit tough due to falling precious metals prices. With major U.S. banks scheduled to report their quarterly earnings this week, the mood is likely to remain cautious.
Air Canada will be in focus. The company has announced a new tentative collective agreement with the International Association of Machinists and Aerospace Workers or IAMAW, recognizing the contributions and skills of the company's employees, effective April 1, 2026.
Canadian stocks closed higher on Friday, extending the gains from a day earlier, as the nation's jobs data showed an unexpected increase in employment in the month of June.
Data from Statistics Canada revealed that the unemployment rate eased to 6.5% in June from 6.6% in the previous month, below market expectations that it would remain unchanged and tying for the lowest since July 2024.
The benchmark S&P/TSX Composite Index settled at 35,305.31, up by 104.86 points or 0.3%.
Asian markets closed weak on Monday amid renewed tensions in the Middle East and anxiety over the status of the Strait of Hormuz. Iran announced the closure of the waterway "until further notice" - a claim U.S. military and maritime authorities rejected.
The major European markets are subdued today with investors largely making stock specific moves in cautious trade due to rising tensions in the Middle East.
In commodities, West Texas Intermediate Crude oil futures are up $2.61 or 3.65% at $74.02 a barrel.
Gold futures are down 44.60 or 1.08% at $4,069.10 an ounce, while Silver futures are down $1.410 or 2.34% at $58.80 an ounce.
