Bay Street Seen Opening On Negative Note

(RTTNews) - The Canadian market is likely to open on a negative note Monday morning, tracking sharply lower crude oil and bullion prices following disappointing economic data from China.

Data released by the National Bureau of Statistics showed industrial production in China was up 3.8% on year in July, much less than an expected increase of 4.6%, and down from the 3.9% growth in June.

The bureau also said that retail sales rose an annual 2.7% in July, missing expectations for 5% and down from 3.1% in the previous month.

In Canadian corporate news, Turquoise Hill Resources (TRQ.TO) announced that the company's Special Committee of independent directors found Anglo-Australian mining firm Rio Tinto's proposal to buy Turquioise for a cash consideration of C$34 per share does not fully and fairly reflect full and fair value of the company.

Ivanhoe Mines Limited (IVN.TO) recorded a profit of $351.5 million for the second-quarter of 2022, compared to a loss of $108.6 million for the same period in 2021.

K92 Mining Inc. (KNT.TO) reported net income of US$5.1 million or $0.02 per share in the second quarter, a 17% increase from a year ago.

MAG Silver Corp (MAG.TO) said its net income for three months ended June 30, 2022 amounted to $7,562, or $0.08 per share, compared with net income of $3,305, or $0.03 per shares in the year-ago quarter.

On the economic front, data on new motor vehicles sales in Canada in the month of June is due at 8:30 AM ET.

Final data on manufacturing sales and wholesale sales data for the month of June are also due at 8:30 AM ET.

The benchmark S&P/TSX Composite Index ended with a gain of 187.93 points or 0.94% at 20,179.81, slightly off the day's high of 20,188.64. The index, which gained nearly 3% this week, finished above the 20,000 mark for the first time in nearly two months.

Despite concerns about slowing growth in China, Asian stocks ended broadly higher on Monday as investors reacted to encouraging economic data from the United States.

After opening higher reacting to the Chinese central bank's surprise decision to cut both one-year and seven-day lending rates by 10 basis points, European stocks are paring gains and are slightly weak amid concerns about slowing growth in China and Europe.

In commodities trading, West Texas Intermediate Crude oil futures are down $4.39 or 4.77% at $87.70 a barrel.

Gold futures are down $27.00 or 1.51% at $1,788.50 an ounce, while Silver futures are lower by $0.568 or 2.74% at $20.130 an ounce.