Bay Street Likely To Open Weak; Inflation Data In Focus

(RTTNews) - Canadian stocks look headed for a weak start on Monday as selling is likely in the materials and technology sectors due to weak precious metals prices and warning of potentially large-scale AI-driven cyberattacks, respectively.

Energy stocks may find support as oil prices are up sharply on supply concerns following Saudi Arabia shutting down a crucial pipeline following recent drone attacks.

Canadian inflation data due at 8:30 AM ET, could make a significant impact on sentiment. Investors also await the Federal Reserve's monetary policy decision due on Wednesday.

In corporate news, Toronto-Dominion Bank Group has announced hat it will commit $150 billion over five years to new lending, underwriting, advisory and other financing activities aimed at accelerating investment and innovation across key sectors of the economy.

California Nanotechnologies Corp., an advanced materials company, said it has received its largest purchase order to date from an existing U.S.-based advanced nuclear energy customer for boron-carbide reactor control components.

Canadian stocks moved higher on Friday as reports indicating an upcoming meeting between Iran and the Gulf Cooperation Council members to de-escalate gulf tensions sparked expectations of an earlier reopening of the Strait of Hormuz.

The benchmark S&P/TSX Composite Index traded positive throughout the session before settling at 35,697.49, up by 191.21 points or 0.54%.

Renewed worries about the development of Artificial Intelligence and the call by AI leaders to slowdown the pace of AI development dampened sentiment across Asian markets. The spike in crude oil prices as well as worries about inflation also weighed on market sentiment ahead of interest rate decisions by the Federal Reserve and Bank of Japan.

European stocks are showing weakness on Monday due to AI-related concerns and higher oil prices. The UK market, however, outperforms thanks to strong buying in energy and consumer sector stocks.

In commodities trading, West Texas Intermediate Crude oil futures are up $3.40 or about 3.4% at $103.45 a barrel.

Gold futures are down $81.10 points or 1.8% at $4,327.80 an ounce, while Silver futures are down $1.798 or 2.76% at $63.390 an ounce.