Bay Street Seen Opening On Mixed Note

(RTTNews) - Canadian shares are likely to open on a mixed note Monday morning, tracking global stocks and the commodities markets. Worries about escalating tensions in the Middle East may weigh on the market.

In company news, Logistec Corp. (LGT.B.TO) announced Monday that it has signed a definitive agreement to be acquired by Blue Wolf Capital Partners LLC for C$67.00 in cash per share.

Teck Resources Limited (TECK_B.TO) reported that its third quarter steelmaking coal sales were 5.2 million tonnes, below its guidance of 5.6 million tonnes - 6.0 million tonnes due to slower than anticipated supply chain recovery following the impacts of B.C. wildfires and the labour disruption at B.C. ports, and plant challenges.

On the economic front, final data on Canadian manufacturing sales for the month of August is due at 8:30 AM ET. Preliminary data showed that manufacturing sales in Canada likely rose by 1% from a month earlier in August, following a 1.6% gain in July.

Wholesale sales data for the month of August is also due at 8:30 AM ET. Wholesale sales in Canada rose by 0.2% month-over-month to C$81.3 billion in July.

The Canadian market ended modestly lower on Friday, as worries about inflation and outlook for interest rates weighed on sentiment.

The benchmark S&P/TSX Composite Index, which climbed about 160 points to 19,659.13 in early trades, dropped to a low of 19,435.04 around mid afternoon before finally settling at 19,462.86 with a loss of 37.38 points or 0.19%. The index gained about 1.1% in the week.

Asian stocks fell in cautious trade on Monday amid fears that the Israel-Hamas war could spark a wider conflict in the oil-rich region.

Israeli Prime Minister Benjamin Netanyahu's office today denied reports of a ceasefire in Gaza that would enable aid to enter and foreigners to flee to Egypt, 10 days into the war with Hamas.

After a positive start and a subsequent retreat, European stocks have edged higher today in cautious trade amid concerns about escalating tensions in the Middle East and rising Treasury yields.

Israel's Ambassador to the UN, Gilad Erdan said his country "has no interest" in occupying Gaza but will do "whatever is needed" to eliminate the Palestinian Hamas militant group which controls the densely populated coastal enclave.

In commodities, West Texas Intermediate Crude oil futures are up marginally at $87.75 a barrel.

Gold futures are down $13.10 or 0.67% at $1,928.40 an ounce, while Silver futures are lower by $0.125 or 0.56% at $22.770 an ounce.