Bay Street Likely To See Wild Swings; Some Bargain Hunting Likely

(RTTNews) - Canadian shares are likely to see some wild swings on Tuesday, tracking the performance of global stocks amid rising fears of a possible recession in the U.S., and escalating tensions in the Middle East.

Some short-covering and bargain hunting after the sharp losses in the previous two sessions may help lift values of some stocks. The Canadian market remained closed on Monday for Civic Day holiday.

Nuvei Corp. (NVEI), a Canadian financial technology firm, Monday announced an agreement to acquire Pay2All Instituiçao de Pagamento Ltda or Pay2All, a licensed payment institution authorized by the Central Bank of Brazil. The financial aspects of the deal were not revealed.

RB Global Inc. (RBA.TO) reported a net income of $100.7 million for the second-quarter, up 30%, compared to the net income it posted in the year-ago quarter.

AtkinsRealis Group (ATRL.TO) announced that it has won a US$65 million contract to provide professional and engineering services to Miami-Dade Department of Solid Waste Management for its new state of the art waste-to-energy (WTE) plant.

On the economic front, data from Statistics Canada showed Canada recorded a trade surplus of C$640 million in June. Exports increased to C$66650 million in June, while imports were up at C$66010 million in the month, the data showed.

Data on Canadian private sector activity in the month of July is due at 9:30 AM ET.

The S&P Global Canada Services PMI fell to 47.1 in June 2024, down from 51.1 in May, marking the lowest reading since March and signaling a return to contraction.

The S&P Global Canada Composite PMI was at 47.5 in June of 2024, refraining from holding the expansion signaled by the 50.6 in the earlier month, which was the first period of growth in the Canadian private sector activity in one year.

Canadian stocks tumbled on Friday as weak U.S. jobs data added to fears the world's largest economy could slip into a recession. Some disappointing earnings updates from top U.S. and Canadian companies weighed as well.

The benchmark S&P/TSX Composite Index, which plunged to a low of 22,020.18 around late morning, losing about 700 points in the process, ended down 495.58 points or 2.18% at 22,227.63. The index lost 2.6% in the week.

Asian stocks recovered some lost ground on Tuesday after a brutal global sell-off the day before on heightened Middle East tensions, an unwinding of yen carry trades, lukewarm tech earnings, and concerns about slowing U.S. economic growth.

European stocks are down in negative territory, extending losses from the previous session on heightened Middle East tensions, an unwinding of yen carry trades, lukewarm tech earnings, and concerns about slowing U.S. economic growth.

In commodities, West Texas Intermediate Crude oil futures are down $0.61 or 0.84% at $72.33 a barrel.

Gold futures are up $4.80 or 0.2% at $2,449.20 an ounce, while Silver futures are down $0.102 or 0.37% at $27.105 an ounce.