Bay Street May Open On Weak Note

(RTTNews) - Canadian stocks are likely to open lower Tuesday morning, tracking weak global cues amid concerns about AI bubble and uncertainty surrounding the Federal Reserve's interest rate moves in coming months.

Weak gold and silver prices may weigh on materials stocks. The mood in the market is likely to remain cautious, although some bargain hunting is likely.

On the economic front, data on Canadian housing starts for the month of October is due at 8:15 AM ET.

Canadian stocks closed weak on Monday as investors digested the nation's consumer price inflation data and awaited upcoming U.S. economic data releases.

The benchmark S&P/TSX Composite Index settled at 30,076.21, down by 250.25 points or 0.83%.

Data released by Statistics Canada today revealed that the headline inflation rate in Canada fell to 2.20% in October from 2.40% in the previous month, within the ballpark of Bank of Canada's expected baseline. Annual core inflation inched up to 2.90% from 2.80% in September.

The Consumer Price Index increased 0.20% in October over the previous month and core inflation month-on-month increased 0.60%.

Asian stocks tumbled on Tuesday as risk aversion intensified ahead of upcoming Nvidia earnings and a slew of U.S. economic data, including the delayed jobs report, which will be released almost seven weeks behind schedule due to the government shutdown. Deepening tensions between China and Japan weighed as well.

The major European markets are down sharply in negative territory today amid rising worries about lofty valuations of AI-related stocks, and uncertainty surrounding Federal Reserve's upcoming interest rate moves.

In commodities trading, West Texas Intermediate Crude oil futures are down $0.06 or 0.1% at $59.85 a barrel.

Gold futures are down 42.60 or 1.05% at $4,031.90 an ounce, while Silver futures are down $0.826 or 1.62% at $49,885 an ounce.