Bay Street Likely To Open On Volatile Note

(RTTNews) - Canadian shares are likely to open on a somewhat volatile note Tuesday morning, amid concerns over escalating U.S. - China trade tensions.

Canadian futures are up, while U.S. futures are notably lower. In commodities, oil futures are down sharply, while gold and silver futures are moving higher.

Stronger than expected earnings updates from big name U.S. lenders may aid sentiment a bit.

Also, investors are likely to look for some bargain hunting after Friday's sharp decline. The Canadian market remained closed on Monday for Thanksgiving Day.

Big name U.S. banks Goldman Sachs, Wells Fargo and JP Morgan have all reported stronger than expected third-quarter results this morning.

In Canadian corporate news, Cenovus Energy Inc. (CVE.TO) announced that it has acquired 21,723,540 common shares of MEG Energy Corp. (MEG.TO) through the Toronto Stock Exchange and other Canadian markets.

After the acquisition, the company beneficially owns or controls 8.5% of MEG's 254,378,035 issued and outstanding common shares, all acquired since October 8.

Canadian stocks declined steeply on Friday - extending Thursday's losses - as markets analyzed the "surprising" jump in employment numbers released today, which dampened the expectations of another rate cut by the central bank.

The benchmark S&P/TSX Composite Index settled at 29,850.89, down by 419.09 points, or 1.38%.

Data released by Statistics Canada on Friday revealed that Canada's unemployment rate held steady at 7.1% in September, below market expectations of 7.2%.

Canadian employment rose by 60,400 jobs in September following the loss of 65,500 jobs in the prior month, well above market estimates of an increase of 5,000 jobs.

Asian stocks ended mostly lower on Tuesday as Sino-U.S. trade tensions simmered and the U.S. government shutdown entered its 13th day, with Republican House Speaker Mike Johnson predicting that the federal government shutdown may become the longest in history.

The major European markets are down in negative territory today amid escalating U.S.-China trade tensions, and the political concerns in France.

In commodities trading, West Texas Intermediate Crude oil futures are down $1.28 or 2.13% at $58.21 a barrel.

Gold futures are gaining $24.30 or 0.6% at $4,157.30 an ounce, while Silver futures are up $0.271 or 0.54% at $50.700 an ounce.