Bay Street Likely To Open Higher On Firm Oil Prices, Rate Cut Hopes

(RTTNews) - Canadian stocks look headed for a positive start Monday morning, tracking positive cues from Asian and European markets, and higher crude oil prices.

Expectations of interest rate cuts from the Bank of Canada and the Federal Reserve next week may also aid sentiment.

With the Canadian economic calendar almost blank this week, movements are likely to remain rangebound for much of the trading session.

Canadian stocks hit new record highs on Friday as softer jobs data indicating a cooling labor market amid economic uncertainty boosted expectations for a rate cut by the central bank.

After opening at 29,0002.78 - above the 29K mark for the first time - the benchmark S&P/TSX Composite Index, hit a record intraday high of 29,115.42 within an hour.

The benchmark S&P/TSX Composite Index, which moved past the 29k mark for the first time, hit a high of 29,115.42 and finally ended the day's session at 29,050.63, gaining 134.74 points or 0.47%.

Data released by Statistics Canada revealed that the unemployment rate in Canada increased to 7.1% in August, the highest level in four years and above market expectations of 7%. Canadian employment fell by 66,000 jobs in August.

Asian stocks closed higher on Monday as weak U.S. jobs data raised expectations of Fed rate cuts, with some analysts anticipating a significant 50 basis points interest rate cut next week.

The major European markets are up in positive territory, although the mood remains a bit cautious in France ahead of the confidence vote that could see the current Prime Minister losing his post.

In commodities, West Texas Intermediate Crude oil futures are up $1.43 or 2.31% at $63.30 a barrel, amid prospects of more sanctions on Russia.

Gold futures are up $4.00 or 0.11% at $36,57.30 an ounce, while Silver futures are up $0.263 or 0.63% at $41.815 an ounce.