Bay Street Seen Opening On Mixed Note

(RTTNews) - Canadian shares are likely to open mixed Monday morning, tracking the trend in commodity markets. Also, with no significant triggers to warrant any big moves, trading is likely to remain somewhat lackluster today.

In corporate news, Primo Water (PRMW.TO) and an affiliate of BlueTriton Brands have agreed for a merger in an all-stock transaction that will create a North American healthy hydration company. Upon closing, Primo Water shareholders and holders of incentive equity will own 43% of the fully diluted shares of the newly combined company with BlueTriton shareholders owning the remaining 57%.

In economic news, data from the Canada Mortgage and Housing Corporation showed housing starts in Canada increased to 264,500 units in May from 241,100 units in April.

The Canadian market ended weak on Friday despite recovering from early lows. Uncertainty about the outlook for interest rates, and concerns on the political front in Europe weighed on sentiment.

The benchmark S&P/TSX Composite Index, which tumbled to 21,486.83, losing more than 200 points in the process, ended the session with a loss of 59.01 points or 0.27% at 21,639.10. The index shed about 1.7% in the week.

Asian stocks ended broadly lower on Monday as worries grew over Europe's political stability and China reported mixed economic data.

Chinese stocks fell as a slew of economic data underlined the country's bumpy recovery and the People's Bank of China (PBOC) left a key policy rate unchanged, disappointing some who had expected a rate cut following surprisingly soft bank lending data.

European stocks pared early gains and are turning in a mixed performance with investors monitoring the developments on the political front, and awaiting policy announcements from the Bank of Engliand and the Swiss National Bank this week.

European stocks fell last week on concerns that a new government in France may worsen the country's fiscal situation and threaten the stability of the euro zone.

French government bonds have won some respite after Marine Le Pen, the leader of the French far-right, said she would co-operate with President Emmanuel Macron if she wins the snap parliamentary election that begins later this month.

In commodities, West Texas Intermediate Crude oil futures are up $0.25 or 0.32% at $78.70 a barrel.

Gold futures are down 15.50 or 0.66% at $2,333.60 an ounce, while Silver futures are lower by $0.162 or 0.55% at $29.310 an ounce.