Bay Street Likely To Open Weak
(RTTNews) - It's likely to be a weak start for Canadian shares on Tuesday, with commodities extending their losses, and European and Asian stocks posting losses amid concerns about global economic slowdown.
After two successive days of sharp losses, some bargain hunting is likely, but the mood will remain cautious amid a lack of positive triggers.
The Canadian market closed sharply lower on Monday as weak commodity prices and data showing another contraction in the nation's manufacturing activity hurt sentiment.
The benchmark S&P/TSX Composite Index ended with a loss of 364.09 points or 1.86% at 19,177.18.
Asian stocks fell sharply to reach their lowest this year on Tuesday after comments from some Federal Reserve officials suggested that the U.S. central bank may have to raise its key interest rate higher than previously expected in the current battle against inflation.
Gold sank to a seven-month low as the dollar hit 11-month highs amid a spike in U.S. benchmark 10-year bonds yield to its highest level since 2007.
South Korean and Chinese markets were closed for holidays. Hong Kong's Hang Seng index tumbled 2.69% as trading resumed after a long holiday weekend.
European stocks are broadly lower amid rising concerns about the health of the eurozone economy following recent disappointing data.
In commodities, West Texas Intermediate Crude oil futures are down $0.42 or 0.47% at $88.40 a barrel.
Gold futures are down $5.90 or 0.32% at $1,841.30 an ounce, while Silver futures are lower by $0.191 or 0.89% at $21.230 an ounce.
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