Bay Street Likely To Open On Positive Note

(RTTNews) - Canadian stocks may open higher on Monday as a sharp drop in oil prices is expected to ease concerns about inflation.

Oil prices fell sharply today amid hopes for a progress in diplomatic talks to ease tensions between Iran and the U.S.

Ahead of a crucial meeting between U.S. President Trump and Gulf-state leaders on the sidelines of the United Nations General Assembly, Trump warned Iran that it would fail economically or face its leadership being wiped out if it didn't make a deal.

Trump indicated potential for a meeting with Iranian President Masoud Pezeshkian in New York, adding that very big things could happen soon and he is in a "deciding mode" on military action, continued economic pressure or a deal.

West Texas Intermediate crude oil futures are down $2.67 or 2.65% at $97.63 a barrel.

Gold futures are down $30.60 or 0.7% at $4,394.30 an ounce, while Silver futures are down $0.239 or 0.365 at $66.910 an ounce.

Amid a lack of fresh economic and earnings data, the focus will be on commodities and developments on the geopolitical front.

The Canadian market ended weak on Friday as investors assessed U.S.-Iran conflict and largely stayed cautious with their moves. The benchmark S&P/TSX Composite Index traded firmly negative throughout the session before settling at 35,804.68, down by 69.58 points or 0.19%.

Asian stocks closed broadly higher on Monday as oil extended declines on hopes of a diplomatic path to de-escalate the U.S.-Iran war. Regional volumes, however, were thin as Japanese markets remained closed for a three-day holiday weekend ending September 23. European stocks are notably higher on Monday as inflation concerns eased following a sharp drop in oil prices amid hopes for diplomatic progress on the Middle East issue at this week's UN meeting.