Bay Street Likely To Open Slightly Weak

(RTTNews) - Lower futures and weak crude oil and bullion prices point to a negative open for Canadian shares on Monday.

Steady European stocks amid hopes for a stimulus in China may help limit market's downside.

Data on Canadian building permits for the month of May is due at 8:30 AM ET.

The total value of building permits in Canada shrank by 18.8% from a month earlier to $9.6 billion in April 2023, after an upwardly revised 12.3% growth in the previous month.

The Canadian market ended modestly higher on Friday as strong gains in healthcare, energy and materials shares helped offset losses in industrials, utilties and communications stocks.

The benchmark S&P/TSX Composite Index, which climbed to 19,911.25 by early afternoon, pared most of its gains and ended just 20.35 points or 0.1% up at 19,831.04. The index gained about 1.6% in the week.

Data from Statistics Canada showed the Canadian economy created 59,900 jobs in June, the highest in five months. The unemployment rate increased to 5.4% in June from 5.2% in the previous month.

Asian stocks ended on a mixed note on Monday after data showed China's economy teetered on the brink of deflation in June, adding to the case for policymakers to launch more stimulus to boost growth.

Chinese shares edged up slightly amid hopes for more stimulus measures and as U.S. Treasury Secretary Janet Yellen gave a positive assessment of bilateral ties between the U.S. and China.

European stocks are up in positive territory Monday afternoon with weak inflation data from China raising hopes for more stimulus in the world's largest economy.

In commodities, West Texas Intermediate Crude oil futures are down $0.55 or 0.76% at $73.31 a barrel.

Gold futures are down $3.40 or 0.16% at $1,929.10 an ounce, while Silver futures are down marginally at $23.275 an ounce.