Bay Street Looks Headed For Positive Start

(RTTNews) - Canadian shares look headed for a firm start on Monday, tracking positive global cues amid hopes the Federal Reserve will be less aggressive at its upcoming meeting later this month.

Sharply higher crude oil prices and steady bullion prices are also likely to aid sentiment.

According to a report released by the Canada Mortgage and Housing Corporation (CHMC), housing starts in Canada fell 3% over a month earlier to 273,841 units in June of 2022.

Despite suffering a mild setback after a positive start, the Canadian market snapped a five-session losing streak and ended modestly higher on Friday.

The market moved up on positive cues from European and the U.S. markets, where stocks gained after remarks from two of the Federal Reserve officials helped ease concerns about a sharper interest rate hike by the central bank later this month.

The benchmark S&P/TSX Composite Index, which dropped to 18,311.57 this morning, after having advanced to 18,500.10 at the start, ended the session with a gain of 65.39 points or 0.36% at 18,394.45.

Asian stocks advanced on Monday after U.S. stocks ended several days of sell-offs with a sharp rebound on Friday, helped by upbeat earnings news and strong economic data.

European stocks edged higher on Monday ahead of this week's ECB meeting and the expected resumption of an important gas pipeline that is currently closed for maintenance.

Expectations that the Federal Reserve will be less aggressive at its upcoming meeting contribute as well to the positive mood in European markets.

The euro held at one-week high after several Fed officials said they didn't favor a 100-bps rate hike.

At its July 21 meeting, the European Central bank is likely to hike its policy rates by 25 basis points and signal a 50-basis point increase for September.

In commodities trading, West Texas Intermediate Crude oil futures are up $2.36 or 2.41% at $99.95 a barrel.

Gold futures are gaining $8.70 or 0.51% at $1,712.30 an ounce, while Silver futures are up $0.136 or 0.73% at $18.730 an ounce.