Bay Street Looks Headed For Higher Open

(RTTNews) - Firm commodity prices and modestly higher Canadian and U.S. futures point to a positive start on Bay Street on Monday.

Investors are likely to look for some bargain hunting after last week's selloff.

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

The Canadian market ended weak on Friday, extending losses to a third straight day, as concerns about rising interest rates and fears of a global economic recession continued to weigh on sentiment.

Fed Chair Jerome Powell said last Wednesday that the central bank will require "substantially more evidence" inflation is on a sustained downward trend before halting its rate hikes.

The benchmark S&P/TSX Composite Index ended with a loss of 157.35 points or 0.8% at 19,443.28, after scaling a low of 19,352.80 and a high of 19,504.22 intraday. The index shed about 2.5% in the week.

Asian stocks ended broadly lower on Monday amid lingering worries over a possible recession and uncertainty over China's economic reopening as the country battles a wave of Covid infections.

China's Shanghai Composite Index tumbled 1.9 percent to 3,107.12, as a surge in new virus cases hit urban centers from north to south.

A survey showed Chinese business confidence fell to its lowest level in nearly a decade, highlighting deepening cracks in the country's economy. Japanese stocks dropped on speculation that the Bank of Japan could tighten its ultra-loose monetary policy amid rising inflationary pressures.

European stocks are up in positive territory about an hour past noon on Monday, with investors indulging in some bargain hunting after last week's selloff.

Investors are also reacting positively to the latest survey results showing that a measure of German business sentiment increased for a third straight month in December.

In commodities trading, West Texas Intermediate Crude oil futures are up $0.50 or 0.67% at $74.79 a barrel.

Gold futures are gaining $4.10 or 0.23% at $1,804.30 an ounce, while Silver futures are up $0.087 or 0.35% at $23.415 an ounce.