Bay Street Seen Opening Weak On Recession Fears

(RTTNews) - Canadian shares are set to open on a weak note on Monday, weighed down by lower commodity prices amid rising fears the global economy is slipping into a recession.

Bank of Nova Scotia (BNS.TO) announced Monday that it has appointed Scott Thomson as President and CEO, effective February 1, 2023. Thomson succeeds Brian Porter, who has decided to retire as President and Chief Executive Officer, effective January 31, 2023.

On the economic front, preliminary data on Canadian wholesale sales for the month of August is due at 8:30 AM ET.

The Canadian market suffered its worst setback in more than than three months on Friday as rising fears of a recession due to aggressive monetary tightening by global central banks to fight inflation rendered the mood extremely bearish.

The benchmark S&P/TSX Composite Index ended with a loss of 521.70 points or about 2.8% at 18,480.98, a two-month closing low. The index, which suffered its biggest single-session drop since June 16 today, shed 4.7% in the week.

Asian stocks fell on Monday to extend recent losses, the dollar surged to new 20-year highs on rising yields, gold held at 2-1/2-year trough and oil extended last week's losses as recession fears gripped financial markets.

The Chinese government raised the foreign exchange risk reserve requirements for financial institutions to stem a drop in the yuan, which touched a 28-month low against the dollar today.

European stocks are turning in a mixed performance in cautious trade amid worries about an economic downturn. Investors are also digesting the latest data from Germany, and the victory of a right-wing bloc led by Giorgia Meloni in Italy's parliamentary elections on Sunday.

German business confidence declined to the lowest level in more than two years in September signaling that the economy is slipping into a recession. The Ifo institute said its business climate index fell to 84.3 from 88.5 in August, with both the current assessment component and expectations dropping significantly.

In commodities trading, West Texas Intermediate Crude oil futures are down $0.98 or 1.24% at $77.76 a barrel.

Gold futures are down $7.00 or 0.42% at $1,648.60 an ounce, while Silver futures are lower by $0.200 or 1.06% at $18.710 an ounce.