Bay Street Seen Opening Slightly Higher

(RTTNews) - Canadian shares may open slightly higher Monday morning with metal stocks seeing some buying early on in the session. With no big economic release due for the day and not many companies to release earnings updates, trading may be a bit lackluster at times.

Gran Tierra Energy Inc. (GTE.TO) reported Monday that its fourth-quarter net loss was $34.21 million, compared to prior year's profit of $7.71 million. Loss per share was $1.04, compared to profit of $0.23 a year ago.

Equinox Gold Corp. (EQX.TO) announced on Sunday that it entered into an agreement to acquire Calibre Mining Corp in an all-stock transaction, a deal that would value the combined companies at $5.4 billion.

Calibre shareholders will receive 0.31 Equinox common shares for each Calibre common share held, according to an Equinox press release. Existing Equinox shareholders and former Calibre shareholders will own approximately 65% and 35% of the outstanding common shares of the combined company.

The Canadian market ended sharply lower on Friday due to heavy selling in technology, materials and energy sectors. Consumer discretionary and financials stocks too reeled under pressure, albeit to a less pronounced extent.

Tariff jitters, weak commodity prices, a mixed batch of economic data, and some disappointing earnings updates rendered the mood bearish.

The benchmark S&P/TSX Composite Index ended with a loss of 367.05 points or 1.44% at 25,147.03, slightly off the day's low of 25,126.74. The index shed about 1.2% in the week.

Asian stocks ended mostly lower on Monday as weak U.S. economic data rekindled growth worries and U.S. President Donald Trump reiterated that his administration would impose reciprocal tariffs "soon" on countries like India and China.

Also weighing on markets, researchers in China said they discovered a new coronavirus in bats that enters cells using the same gateway as the virus that causes Covid-19.

China's Shanghai Composite Index slipped 0.2 percent to 3,373.03 after Trump directed a top government committee to limit Chinese investment in energy, technology, and other vital U.S. industries.

In addition, media reports suggested that the Trump administration has asked Mexico to levy their own duties on Chinese imports as part of their efforts to avoid possible U.S. tariffs.

European stocks are turning in a mixed performance in cautious trade today with investors awaiting fresh directional clues. Worries about tariffs and their impact on global economic growth weigh on sentiment.

In commodities, West Texas Intermediate Crude oil futures are down marginally at $70.36 a barrel.

Gold futures are gaining $11.80 or 0.41% at $2,965.00 an ounce, while Silver futures are down $0.072 or 0.22% at $32.940 an ounce.