Bay Street Likely To Open Higher As Oil Prices Rally

(RTTNews) - The Canadian market is set to open on a firm note on Monday, as energy stocks are likely to surge higher on rising crude oil prices.

Oil prices have climbed up sharply after Saudi Arabia and other major oil producers said they would cut production by 1.15 million barrels per day from May until the end of the year.

In company news, Saputo Inc. (SAP.TO) said that it agreed to sell two fresh milk processing facilities in Laverton North, Victoria, and Erskine Park, New South Wales, to Coles Group Limited, an Australian-based supermarket, retail, and consumer services chain, in a transaction valued at approximately C$95 million or A$105 million.

Sun Life Financial, Inc. (SLF.TO) announced Monday it has completed the sale of SLF of Canada UK Ltd. to Phoenix Group Holdings plc (PHNX.L). This transaction will see Sun Life UK's life and pension policies and annuity blocks for UK Clients move to Phoenix Group.

Teck Resources Ltd (Teck.B.TO) has rejected unsolicited acquisition proposal from Glencore Plc, stating rival's all-stock offer is inferior to its own planner separation.

On the economic front, Canadian manufacturing PMI reading for the month of March is due at 9:30 AM ET. The S&P Global Canada Manufacturing PMI rose to 52.4 in February from 51 in January.

The Canadian market extended its winning streak to a sixth session with stocks from technology, consumer discretionary and industrials sectors posting strong gains on Friday.

The benchmark S&P/TSX Composite Index ended with a gain of 158.90 points or 0.8% at 20,099.89, after hitting a high of 20,126.54 intraday. The index gained more than 3% in the week, and 3.7% in the January-March quarter.

Asian stocks turned in a mixed performance on Monday as a surge in oil prices brought inflation and rate hike worries back into focus.

European stocks are higher after the Federal Reserve's preferred gauge of inflation rose less than expected in February, boosting optimism policymakers might hit the pause button on rate hikes in May.

In commodities, West Texas Intermediate Crude oil futures are up $4.97 or 6.57% at $80.64 a barrel.

Gold futures are gaining $6.90 or 0.35% at $1,993.10 an ounce, while Silver futures are down $0.066 or 0.27% at $24.090 an ounce.