Bay Street May Open With Negative Bias

(RTTNews) - Canadian shares are likely to open with a negative bias on Monday, weighed down by lower commodity prices.

With the Federal Reserve's interest rate decision due on Wednesday, the mood is likely to be largely cautious.

In earnings news, Cargojet (CJT.TO) reported third-quarter net income of $83.4 million (net loss of $1.9 million excluding warrant valuation gain) compared to net loss of $12.9 million in 2021 (net income of $23.9 million excluding warrant valuation loss).

Capstone Copper Corp (CS.TO) posted adjusted net loss of $19.3 million, or $0.02 per share in the third quarter of this financial year. The company posted adjusted net income of $35.3 million or $0.09 per share in the year-ago quarter.

The Canadian market ended on a firm note on Friday despite suffering set back after a positive start. The benchmark S&P/TSX Composite Index, which dropped to 19,282.70 early on in the session, ended with a gain of 119.08 points or 0.62% at 19,417.19. The index gained 2.95% in the week.

On the economic front, a report from Statistics Canada said the Canadian economy likely expanded by 0.4% quarter-on-quarter in Q3 of 2022, pointing to a 0.1% growth in September from August, according to preliminary estimates. Regarding August, the GDP also expanded by 0.1%, above preliminary estimates of a stall.

Asian stocks rose broadly on Monday amid renewed bets the U.S. Federal Reserve may slow the pace of interest-rate increases at its December meeting.

Chinese and Hong Kong shares underperformed regional peers as weak economic data added to concerns about slowing growth.

European stocks are turning in a mixed performance in cautious trade with data showing a surge in eurozone inflation soaring to a record high in October weighing on sentiment. Markets are also looking ahead to the Fed interest rate decision.

In commodities trading, West Texas Intermediate Crude oil futures are down $1.55 or 1.77% at $86.35 a barrel.

Gold futures are down $2.30 or 0.14% at $1,642.50 an ounce, while Silver futures are lower by $0.022 or 0.11% at $19.125 an ounce.