Bay Street Likely To Open On Firm Note

(RTTNews) - Canadian shares are likely to open on a firm note Monday morning, tracking gains in European markets, and higher commodity prices.

Worries about new tariffs by U.S. effective Tuesday could weigh and limit market's upside.

On the trade front, speculation swirled over exactly what U.S. President Donald Trump has planned on new tariffs that will come into force beginning Tuesday.

U.S. Commerce Secretary Howard Lutnick said that Canada and Mexico had done a "reasonable job" securing their borders, but fentanyl continues to flow into the U.S.

That is a fluid situation and the President will determine whether to stick with the planned 25 percent level, Lutnick told the Fox News program Sunday Morning Futures. However, Trump is expected to raise tariffs on China on Tuesday as scheduled.

Data on Canadian manufacturing activity during the month of February is due at 9:30 AM ET. The S&P Global Canada Manufacturing PMI fell to 51.6 in January 2025, down from 52.2 in December, signaling a slower expansion.

After a weak start and a subsequent recovery, the Canadian market slipped into negative territory around early afternoon on Friday, but gained in strength after that with stocks from industrials, financials, utilities and consumer staples attracting buyers.

The benchmark S&P/TSX Composite Index ended with a gain of 265.21 points or 1.06% at 25,393.45. The index gained about 1% in the week, but posted a month loss of over 1%.

Asian stocks moved higher on Monday as new PMI data suggested Chinese manufacturing had a solid start to 2025 and European leaders pledged to assemble a "coalition of the willing" to develop a plan for ending Ukraine's war with Russia.

European stocks are up firmly in positive territory with defense shares hogging the limelight on expectations of increased defense spending by European countries.

In commodities, West Texas Intermediate Crude oil futures are up $0.25 or 0.35% at $70.01 a barrel.

Gold futures are gaining $33.30 or 1.17% at $2,881.80 an ounce, while Silver futures are up $0.734 or 2.34% at $32.230 an ounce.