Bay Street Likely To Open On Firm Note

(RTTNews) - Higher Canadian and U.S. futures, and rising crude oil and bullion prices point to a positive start on Bay Street Monday morning. Optimism about rate cuts by the Fed and several central banks in Europe is also expected to aid market's rise.

Last week, Bank of Canada Governor Tiff Macklem hinted at the possibility of a June cut if Canadian inflation kept easing.

In the U.S. data from the Labor Department showed on Friday that employment in the country rose by much less than expected in the month of April. The report showed the unemployment rate crept up to 3.9%, and the annual rate of wage growth slowed to 4% in April from 4.1% a month earlier.

The Canadian market ended on a firm note on Friday on easing concerns about the outlook for Fed interest rates after data showed a slowdown in U.S. employment growth.

Utilities, technology, communications and real estate stocks were among the prominent gainers. Several stocks from materials, healthcare, industrials and financials sectors too ended notably higher. Shares from energy and consumer sections ended mixed.

The benchmark S&P/TSX Composite Index, which climbed to 21,983.45, ended the day's session with a gain of 124.19 points or 0.57% at 21,947.41. The index posted a marginal loss for the week.

Asian stocks rose broadly in thin trade on Monday, with Japanese and South Korean markets closed for a public holiday.

The dollar index dropped as Friday's data showing weak U.S. job growth spurred expectations for Fed rate cuts.

European stocks are up in positive territory amid hopes the Fed will cut interest rate by the third quarter, after data showed weak jobs growth in the month of April.

Media reports quoted European Central Bank Chief Economist Philip Lane as saying that inflation is returning to the target in a timely manner and hence there is a stronger case for June rate cut.

In economic releases, Eurozone's PMI services index was finalized at 53.3 in April, marking a notable improvement from March's 51.5.

The Eurozone Sentix Investor Confidence rose from -5.9 to -3.6 in May, beating expectations for a score of -4.8 and marking the seventh consecutive increase.

In commodities, West Texas Intermediate Crude oil futures are up $0.78 or 1% at $78.89 a barrel.

Gold futures are gaining $17.10 or 0.75% at $2,325.70 an ounce, while Silver futures are up $0645 or 2.4% at $27.335 an ounce.