Bay Street Likely To Open On Weak Note

(RTTNews) - Canadian shares are likely to open weak on Tuesday, tracking lower European stocks and weak bullion prices.

Investors are likely to focus on the developments in U.S. debt ceiling talks. Sino-U.S. tensions may weigh on sentiment. Higher crude oil prices push up energy stocks and limit market's downside.

U.S. President Joe Biden and House Speaker Kevin McCarthy said they held productive talks but there was no agreement on how to raise the government's $31.4 trillion debt ceiling.

On the economic front, data on Canadian raw materials and producer prices for the month of April is due at 8:30 AM ET.

Raw materials prices in Canada sank 16.5% year-on-year in March, as crude plunged 28.2%, the steepest drop since November of 2020. Industrial producer prices in Canada edged up 0.1% month-over-month in March, compared to the downwardly revised 0.6% drop in February.

The Canadian market ended modestly higher on Friday, aided by gains in energy and technology stocks. The benchmark S&P/TSX Composite Index ended with a gain of 53.97 points or 0.27% at 20,351.06, after scaling a low of 20,306.65 and a high of 20,399.61 intraday. The index shed 0.34% in the week.

The market was closed on Monday for Victoria Day.

Asian stocks closed mostly lower on Tuesday as growing Sino-U.S. tensions and hawkish Fed comments overshadowed optimism related to U.S. debt ceiling talks.

European stocks are broadly lower, weighed down by a survey showing activity in the Eurozone manufacturing sector contracted to a 36-month low in May due to weak demand and a fall in selling prices.

U.S. debt ceiling worries and signs of rising Sino-U.S. tensions also keep underlying sentiment cautious.

In commodities, West Texas Intermediate Crude oil futures are up $0.67 or 0.93% at $72.72 a barrel.

Gold futures are down $16.00 or 0.82% at $1,961.20 an ounce, while Silver futures are lower by $0.536 or 2.25% at $23.325 an ounce.