Bay Street Likely To Open On Weak Note

(RTTNews) - Weak European stocks and lower commodity prices point to a negative open for stocks on Bay Street Monday morning.

The mood in the market is likely to remain cautious with investors looking ahead to Fed Chair Jerome Powell's congressional testimonies, due on Wednesday and Thursday.

The U.S. market is closed today for Juneteenth holiday.

On the economic front, data on Canadian raw materials and producer prices for the month of May are due out at 8:30 AM ET.

Raw materials prices in Canada fell 10.8% year-on-year in April 2023. Producer prices slumped by 3.5% year-on-year in April, after an upwardly revised 2.2% decline a month earlier.

Despite opening on a positive note and climbing higher subsequently, the Canadian market turned weak and drifted lower on Friday, weighed down by losses in technology and energy sectors.

The benchmark S&P/TSX Composite Index ended with a loss of 51.98 points or 0.26% at 19,975.37. The index climbed to 20,112.35 in early trades. The index gained about 0.4% in the week.

Asian stocks ended lower on Monday as investors stayed cautious ahead of China's interest-rate decision and Fed Chair Jerome Powell's testimonies.

European stocks are down firmly in negative territory amid fading hopes about China stimulus and caution ahead of China's loan prime rate announcement ad Fed Chair Powell's congressional testimonies.

The Bank of England is scheduled to announce its monetary policy on Thursday. The bank is expected to raise interest rates by a quarter point to a 15-year high of 4.75%.

In commodities, West Texas Intermediate crude oil futures are down $0.28 or 0.39% at $71.50 a barrel.

Gold futures are down $10.10 or 0.51% at $1,961.10 an ounce, while Silver futures are lower by $0.136 or 0.56% at $23.990 an ounce.