Canadian Shares Likely To See Mixed Start

(RTTNews) - Bay Street is likely to open on a mixed note on Monday, tracking the mixed trend in commodities markets.

While crude oil prices are up sharply following Saudi Arabia announcing a further reduction in output, bullion futures are down in negative territory.

Strong U.S. non-farm payroll data has helped ease fears of a recession in the world's largest economy, but worries about tighter monetary policy still persist.

The Canadian market ended on a buoyant note on Friday on all-round buying, amid easing worries about a U.S. debt default, and data showing stronger-than-expected growth in U.S. non-farm payroll in the month of May.

The benchmark S&P/TSX Composite Index ended with a gain of 352.38 points or 1.79% at 20,024.63, slightly off the day's high of 20,032.11. The index shed about 1.6% in the week, recording its sixth straight weekly loss.

Asian stocks ended higher on Monday as Friday's resilient U.S. jobs data and the Senate passing the debt ceiling bill helped ease fears of a recession. Encouraging service sector readings from China and Japan also boosted sentiment.

European stocks are turning in a mixed performance with investors digesting a slew of economic data from the region.

Data showed earlier in the day that German trade surplus widened to €18.4 billion from €14.9 billion.

Eurozone business growth slowed in May. HCOB's final Composite Purchasing Managers' Index (PMI), compiled by S&P Global, dropped to a three-month low 52.8 in May from April's 54.1.

Eurozone PPI came in at -3.2% month-on-month in April versus -2.7% expected, and the Eurozone Sentix Investor Confidence index came in a -17.1 in June, dropping from -13.1 booked in May and -9.2 expected.

Meanwhile, data showed U.K. service sector activity expanded for the 4th consecutive month. The S&P Global/CIPS UK Services PMI was revised slightly higher to 55.2 in May of 2023 from a preliminary of 55.1, holding close to April's 12-month peak of 55.9.

In commodities, West Texas Intermediate Crude oil futures are up $1.42 or nearly 2% at $73.16 a barrel after Saudi Arabia pledged to cut its production by another 1 million barrels per day in July.

Gold futures are down $11.50 or 0.59% at $1,958.10 an ounce, while Silver futures are lower by $0.192 or 0.81% at $23.555 an ounce.