Bay Street May Open On Mixed Note

(RTTNews) - The Canadian market may open on a mixed note Monday morning. While positive mood in European markets, and higher U.S. futures may aid sentiment, weak crude oil prices and subdued metals may weigh a bit.

The focus will be on the Bank of Canada's monetary policy decision on Wednesday. The Canadian central bank is widely expected to cut borrowing costs once again.

Air Canada (AC.TO) announced that it registered operating revenue of C$5.5 billion in the second quarter, higher than C$5.4 billion, posted for the same period previous year. Operating income stood at C$466 million, lower than C$802 million a year ago. The airline revised down its adjusted EBITDA guidance to C$3.1 billion to C$3.4 billion from C$3.7 billion to C$4.2 billion, to reflect lower yield environment, lower-than-expected load factors for the second half, competitive pressures in international markets, and others. Sleep Country Canada Holdings Inc. (ZZZ.TO) announced today that has inked a deal to be acquired by 16133258 Canada Inc., a newly-formed subsidiary of Fairfax Financial Holdings Ltd. (FFH.TO) for C$35 per share or around C$1.7 billion in cash. The purchase price represents a 28% premium to the closing price on July 19.

The Canadian market ended weak on Friday, losing for a third straight session, amid a lack of positive catalysts, but still posted a small weekly gain. The benchmark S&P/TSX Composite Index ended with a loss of 36.37 points or 0.16% at 22,690.39. The index touched a low of 22,616.17 and a high of 22,770.39 in the session. The index, which hit new all-time high of 22,996.14 on Tuesday, gained 0.1% in the week. Asian stocks ended broadly lower on Monday on Monday as U.S. President Joe Biden announced his withdrawal from the 2024 presidential race against Donald Trump and China's central bank unexpectedly lowered its one-year benchmark loan prime rate to bolster a slowing economy.

European stocks are moving higher on Monday, bouncing back after having suffered steep losses in the previous session following a global IT outage linked to issues at cybersecurity firm CrowdStrike.

The dollar slid while Treasuries rose as investors weighed the implications of U.S. President Joe Biden's exit from the presidential election race.

In commodities, West Texas Intermediate Crude oil futures are down $0.54 or 0.67% at $79.59 a barrel.

Gold futures are up slightly at $2,399.60 an ounce, while Silver futures are down $0.234 or 0.82% at $29.065 an ounce.