Bay Street Likely To Open On Weak Note

(RTTNews) - Canadian shares look headed for a weak start on Monday, as weak metal prices and rising bond yields are likely to trigger selling in materials and technology sectors, respectively.

Uncertainty about interest rate cut by the Fed this month following Friday's upbeat U.S. jobs data may also weigh on sentiment.

Enerflex Ltd. (EFX.TO) said its Energy Infrastructure (EI) product line and After-Market Services are expected to contribute about 65% of the company's gross margin before depreciation and amortization. It sees contracts in EI product line to generate about $1.5 billion of revenue during their current terms. Enerflex is targeting for a capital expenditure of $110 million to $130 million in 2025.

Barrick Gold Corporation (ABX.TO) today recommended that its shareholders reject an unsolicited "mini-tender" offer by TRC Capital Investment for about 0.29% of the company's common stock, saying that the offer has been made at a price below market price.

The Canadian market closed notably lower on Friday, hurt by rising bond yields, and fading optimism about interest rate cuts by the Federal Reserve after data showed stronger-than-expected growth in U.S. non-farm payroll employment.

Canadian employment data too came in stronger than expected, reducing prospects of any significant monetary easing by the Bank of Canada.

Data from Statistics Canada showed employment in Canada advanced by 91,000 in December 2024, the largest gain since January 2023, following a 51,000 rise in the previous month. Meanwhile, the unemployment rate in Canada dropped to 6.7% in December, from 6.8% a month earlier.

The benchmark S&P/TSX Composite Index, which tumbled to 24,693.75 in early trades, closed down 305.63 points or 1.22% at 24,767.73. The index shed about 1.1% in the week.

Asian markets closed weak on Monday amidst fears of an extended pause by the Federal Reserve attributed to stronger-than-expected payrolls data from the U.S. Data from China that showed a better-than-expected trade balance did not suffice to lift market sentiment. Markets in Japan were closed for a holiday.

European markets are exhibiting weakness amid fading hopes of a rate cut by the Fed this month, and on rising bond yields and uncertainty about the outlook for economic growth.

In commodities, West Texas Intermediate Crude oil futures are up $1.58 or 2.06% at $78.15 an ounce.

Gold futures are down $31.40 or 1.16% at $2,683.60 an ounce, while Silver futures are lower by $1.034 or 3.3% at $30.280 an ounce.