Bay Street Set For Positive Open As Oil Prices Plunge

(RTTNews) - Canadian stocks look headed for a positive start on Monday amid easing concerns about inflation following a sharp drop in crude oil prices.

Oil prices are down sharply today as ongoing discussions involving Iranian officials and Qatari mediators have raised hopes of possible breakthrough that could ease supply concerns and improve the outlook for global energy markets.

Traders are also reacting to reports suggesting that U.S. President Donald Trump wants to give diplomacy with Iran more time before resuming strikes.

In earnings news, Imperial Oil announced late on Friday that it posted earnings per share of $5.11 in the third quarter of this year, compared with $2.17 a year ago.

Gibson Energy, First Capital Realty, Ero Copper and Jamieson Wellness are scheduled to report their quarterly earnings today.

On the economic front, Canada's manufacturing PMI reading for the month of October is due at 9:30 AM ET. The S&P Global Canada Manufacturing PMI fell to 51.5 in September from 53 in August, falling to its lowest level in six months.

The Canadian market closed sharply lower on Friday as stocks tumbled due to the increasing threat of re-escalation in the Middle East following Iran's silence on a call for discussions by U.S. Vice President JD Vance amid reports of U.S. planning a large-scale attack on Iran after the November midterm elections.

The benchmark S&P/TSX Composite Index traded firmly negative throughout the session before settling at 35,620.03, down by 629.00 points or 1.74%.

Asian stocks ended mixed on Monday amid growing concerns about massive AI spending. Asia's factory growth continued to expand in October, but growth slowed in major chip exporters, private surveys showed earlier today.

Following Intel's nearly 29% plunge on Friday, its worst one-day drop in decades, investors looked ahead to upcoming earnings from Apple, AMD and Palantir for further direction.

European stocks are turning in a mixed performance with investors making largely cautious moves, looking for directional clues. Sharply lower crude oil prices aid sentiment.

West Texas Intermediate Crude oil futures are down $4.71 or 4.51% at $99.41 a barrel.

Gold futures are up $8.10 or 21% at $3,907.00 an ounce, while Silver futures are up $0.789 or 1.58% at $50.065 an ounce.