Bay Street Seen Opening On Mixed Note

(RTTNews) - Canadian shares are likely to open on a mixed note on Monday, tracking higher commodity prices and weak European markets.

Worries about a surge in Covid cases in China are likely to weigh on sentiment.

Investors await the release of U.S. consumer inflation report as well as a slew of central bank decisions this week for additional clues on the economic and rate outlook.

After spending much of the day's session in positive territory, the Canadian market ended marginally down on Friday, slipping into the red in the closing minutes.

The mood was cautious with investors looking ahead to the monetary policy meeting of the Federal Reserve next week. The central bank is widely expected to raise interest rate by 50 basis points.

The benchmark S&P/TSX Composite Index ended down 22.12 points or 0.11% at 19,947.07, slightly off the day's low of 19,944.80. The index touched a high of 20,086.26.

Asian stocks declined on Monday as data on U.S. producer prices sent mixed signals on inflation and China faced a surge in virus 19 cases after partially easing aspects of its so-called zero-COVID policy.

Chinese and Hong Kong stocks led regional losses after a top government health adviser warned that the epidemic in China is spreading rapidly and that it will be difficult to completely cut off the transmission chain.

European stocks are down in negative territory in cautious trade as investors refrain from making big bets ahead of key U.S. inflation data as well as a trio of central bank meetings due this week. Concerns about the spread of Covid-19 infections in China weigh as well on sentiment.

In commodities trading, West Texas Intermediate Crude oil futures are up $0.40 or 0.57% at $71.42 a barrel.

Gold futures are down $9.90 or 0.55% at $1,800.80 an ounce, while Silver futures are lower by $0.117 or 0.49% at $23.600 an ounce.