Bay Street Likely To See Some Wild Swings

(RTTNews) - Weak crude oil and metal prices may weigh on resources stocks and render the Canadian market a bit volatile Monday morning. Data showing a slowdown in annual inflation growth may help limit market's downside.

The Middle East war may continue to weigh on investor sentiment. Investors will be looking ahead to the monetary policy announcements from several central banks.

Data from Statistics Canada showed the headline inflation in Canada slowed to 1.8% in February, from 2.3% a month earlier. Inflation was expected to come in at 1.9%. The Consumer Price Index increased 0.5% in February over the previous month.

Canada's annual core inflation fell to an 11-month low of 2.3% in February from 2.6% in January. On a monthly basis, core consumer prices rose 0.4% in February, following a 0.2% increase in January.

A separate data from Statistics Canada said car registrations in Canada dropped to 114,410 Units in January from 127,248 Units in December of 2025.

A report from Canada Mortgage And Housing Corporation showed housing starts in Canada increased 4.5% in February 2026 to a seasonally adjusted annual rate of 238,049 units, up from 250,900 in January.

The Canadian market ended weak on Friday, losing for a third straight session. Investors assessed the jobs data from the U.S. and Canada, and continued to follow the developments on the Middle East conflict front.

The benchmark S&P/TSX Composite Index ended the day's session with a loss of 298.67 points or 0.91% at 32,541.93.

Data released by Statistics Canada revealed that the unemployment rate rose to 6.7% in February from 6.5% in the previous month, above the expected 6.6% increase.

The economy shed 83,900 (or 0.4%) jobs in February following a decrease of 25,000 jobs in January.

Asian markets ended on a mixed note on Monday with investors largely making cautious moves as the war in the Middle East entered the third week.

European stocks are turning in a mixed performance in somewhat lackluster trade as investors continue to assess the impact of the Middle East war, and look ahead to monetary policy announcements from the Federal Reserve, the Bank of England and the European Central Bank.

In commodities trading, West Texas Intermediate crude oil futures are down $1.92 or 1.95% at $96.79 a barrel.

Gold futures are down $39.00 or 0.77% at $5,022.70 an ounce, while Silver futures are down $1.643 or 2.02% at $79.700 an ounce.