Bay Street Likely To Open With Slightly Negative Bias

(RTTNews) - Canadian shares may open with a negative bias Monday morning, tracking weak European stocks and lower bullion prices. With the Federal Reserve's monetary policy announcement, and crucial U.S. consumer price inflation data due later in the week, the mood is likely to remain cautious.

The Fed is unlikely to make any change in interest rate, but the bank's accompanying statement is in focus for clues about future policy stance.

Africa Oil Corp. (AOI.TO) announced that it acquired 994,000 common shares last week under its previously announced buyback program. The company will cancel all the shares repurchased under the buyback program.

The Canadian market ended notably lower on Friday, hurt by sharp losses in materials and real estate sectors. Fading hopes of a rate cut by the Federal Reserve in September following data showing a stronger than expected growth in U.S. non-farm payroll employment weighed as well.

The benchmark S&P/TSX Composite Index ended down by 222.10 points or 1% at 22,007.00, slightly off the day's low of 22,002.68. The index, which opened about 90 points down, stayed in negative territory right through the day's session. The index shed about 1.2% in the week.

Data from Statistics Canada showed employment in Canada rose by 26,700 jobs in May 2024, following an addition of 90,400 increase in the previous month and surpassing forecasts of 22,500.

The unemployment rate in Canada rose to 6.2% in May from 6.1% in the earlier month, the highest since October of 2021.

Asian stocks ended mostly lower in thin trade on Monday, with markets in China, Hong Kong and Australia closed for public holidays. The dollar rose in international markets as the euro collapsed dramatically in the wake of political upheaval in France following President Emmanuel Macron's demand for an early legislative election.

The major European markets are down firmly in negative territory with French stocks coming under heavy selling pressure, after President Emmanuel Macron called for snap legislative elections later in June, following the European Union elections showing a broader shift towards right-wing and far-right parties.

In commodities, West Texas Intermediate crude oil futures are up $0.22 or 0.29% at $75.75 a barrel.

Gold futures are down $0.700 or 0.3% at $2,318.00 an ounce, while Silver futures are gaining $0.430 or 1.46% at $29.870 an ounce.