Bay Street Likely To Open Higher As Commodities Advance

(RTTNews) - Canadian shares may open higher Monday morning as energy and materials stocks are likely to find support on firm commodity prices. However, with the U.S. markets closed today for Memorial Day, activity on Bay Street is likely to remain a bit lackluster.

Preliminary data on Canadian wholesale sales for the month of April is due at 8:30 AM ET.

The Canadian market closed on a firm note on Friday, rebounding well after posting losses in the previous two sessions, as investors chose to pick up stocks at reduced prices. Also, expectations of a rate cut by the Bank of Canada next month helped underpin sentiment.

The benchmark S&P/TSX Composite Index ended with a gain of 120.08 points or 0.54% at 22,320.87. The index shed about 0.65% in the shortened week.

Bombardier Inc. (BBD.B.TO) announced that it intends to vigorously defend itself in a class action, which the Superior Court of Québec has authorized Plaintiff Denis Gauthier to institute for damages against it under the Québec Securities Act. Bombardier and the individual defendants deny any wrongdoing.

Africa Oil (AOI.TO) announced that it bought back about 1.3 million common shares from May 20 to May 24 under its previously announced share buyback program.

Asian stocks advanced on Monday while the dollar held firm as investors awaited U.S., European, Japanese and Australian inflation readings this week for clarity on the global interest rate outlook.

European stocks are slightly higher in cautious trade with investors looking for directional clues.

In commodities, West Texas Intermediate Crude oil futures are up $0.55 or 0.71% at $78.27 a barrel.

Gold futures are gaining $11.00 or 0.47% at $2,345.50 an ounce, while Silver futures are up $0.551 or 1.81% at $31.050 an ounce.