Bay Street Likely To Open Higher

(RTTNews) - The Canadian market, which will be back in action on Tuesday after an extended weekend, is likely to start on a positive note, tracking Asian and European markets, where stocks gained amid a drop in bond yields, and Fed rate pause hopes.

Geopolitical tensions might weigh on the market. The fight between Hamas and Israel continues. According to reports, air strikes are continuing in Gaza and the war has resulted in severe casualty, and displacement of more than 10,000 people from the Gaza strip.

Worries about geopolitical tensions took a toll of global stocks on Monday, but Wall Street rebounded and closed higher, and most of the markets in Europe pared some of their losses. Today, Asian stocks closed higher, and the major European markets are up firmly in positive territory.

In Canadian company news, Canopy Growth Corporation (WEED.TO) said Tuesday that it has received its certification from the EU, which will allow it to continue exporting medical cannabis to medical markets in Europe and around the world.

Canopy is banking on this receipt of EU GMP certification to preserve opportunities across distribution channels and geographies in the EU medical markets.

The Canadian market rebounded from early losses and ended on a firm note on Friday. The benchmark S&P/TSX Composite Index, which fell to 18,907.62 early on in the session, rallied to 19,283.77 and finally ended with a gain of 108.26 points or 0.57% at 19,246.07. The index shed about 1.5% in the week.

The market remained closed on Monday for Thanksgiving Day holiday.

Asian stocks ended mostly higher on Tuesday as oil prices slipped following the previous session's strong rally, and the dollar and bond yields retreated on Fed rate pause hopes.

Top Fed officials indicated on Monday that rising bond yields and the resultant tightening of financial conditions might prompt the U.S. central bank to stand pat on interest rates until year-end.

Despite geopolitical tensions in the Middle East, European stocks are up sharply on Tuesday as bond yields fell after Fed officials indicated that the series of interest rate hikes in the U.S. may be at an end.

In commodities, West Texas Intermediate Crude oil futures are down $0.44 or about 0.5% at $85.94 a barrel.

Gold futures are gaining $6.20 or 0.34% at $1,870.50 an ounce, while Silver futures are down $0.064 or 0.29% at $21.860 an ounce.