Bay Street Likely To Open On Cautious Note

(RTTNews) - Canadian shares are likely to open on a mixed note on Monday with investors largely reacting to quarterly earnings updates.

The mood is likely to remain cautious amid rising concerns about the health of the world's second largest economy on reports that Country Garden, a major property developer in China, is now on the brink of default.

In earnings news, Premium Brands Holdings Corporation (PBH.TO) reported adjusted earnings of $56.3 million for the second quarter of this financial year, compared with $61.5 million in the corresponding quarter last year. Second-quarter revenue came in at $1,630.9 million, compared with $1,519.9 million a year ago.

Boralex Inc (BLX.TO) reported adjusted net earnings of $22 million, up $8 million from a year ago.

Cargojet Inc (CJT.TO) reported second-quarter net income of $31.1 million compared to net income of $160.9 million in 2022.

The Canadian market ended modestly higher on Friday. The mood remained a bit cautious after data showing a slightly bigger than expected increase in U.S. producer prices triggered some speculation the Federal Reserve will likely decide to keep interest rates higher for longer duration.

The benchmark S&P/TSX Composite Index, which opened weak and dropped to 20,293.50 at the start, ended with a gain of 64.69 points or 0.32% at 20,407.57. The index gained about 0.85% in the week.

Asian stocks ended sharply lower on Monday as concerns mounted around Country Garden, a major property developer in China which is now on the brink of default.

China's new bank loans tumbled in July and other key credit gauges also weakened, deepening investor concerns about the health of the world's second largest economy and sending the yuan to a six-week low.

European stocks are turning in a mixed performance with investors making cautious moves amid rising concerns about the health of the Chinese economy.

In commodities, West Texas Intermediate Crude oil futures are down $0.46 or 0.55% at $82.73 a barrel.

Gold futures are down marginally at $1,945.80 an ounce, while Silver futures are lower by 0.013 or 0.05% at $22.730 an ounce.