Bay Street Looks Headed For Weak Start

(RTTNews) - After five successive days of losses, the Canadian market managed to edge up marginally on Monday, but it looks stocks are in for a negative start today, tracking weak global cues.

Crude oil and bullion prices are drifting lower, and European stocks are mostly down in negative territory amid persisting worries about economic slowdown and higher interest rates.

Also, with some crucial economic data due from Canada and the U.S. due this week, investors likely to stay cautious and refrain from making significant moves.

On the economic front, preliminary data on Canadian manufacturing sales for the month of August is due at 8:30 AM ET.

Manufacturing sales increased 1.6% month-over-month in July 2023, compared to the preliminary estimate of a 0.7% gain and rebounding from an upwardly revised 2% decline in the previous month.

Canadian stocks turned in a mixed performance on Monday as investors stayed largely cautious, looking ahead to a slew of economic data. The benchmark S&P/TSX Composite Index ended with a gain of 20.64 points or 0.1% at 19,800.61.

Asian stocks ended weak on Tuesday, as the dollar reached its peak for the year and the 10-year U.S. Treasury yield topped 4.5% amid bets that borrowing costs in the U.S. and Europe will remain higher for longer.

Fresh signs of stress in China's property sector and worries about a possible U.S. government shutdown also kept nervous.

European stocks are broadly lower, extending recent losses, amid concerns about higher interest rates and weakening Chinese economy. Worries around a possible U.S. government shutdown also weighs on markets.

In commodities, West Texas Intermediate Crude oil futures are down $0.88 or 0.98% at $88.80 a barrel.

Gold futures are down $5.90 or 0.31% at $1,930.70 an ounce, while Silver futures are lower by $0.110 or 0.47% at $23.275 an ounce.