Canadian Stocks Set For Cautious Open; Bombardier In Focus

(RTTNews) - Canadian stocks look headed for a somewhat subdued start on Tuesday as weak bullion prices and concerns about inflation and prospects of monetary tightening by the Federal Reserve may render the mood cautious.

Bombardier Inc. shares will be in focus after U.S. President Donald Trump threatened to ban the sale of Bombardier jet planes unless they are manufactured in the United States.

"No more selling Bombardier in The United States! Their products aren't good enough! Over 50% of their revenue comes from the United States — They live off American Buyers, American Companies, American Airports, and American Service — All while Canada blocks our GREAT American Banks, and Companies, throughout the U.S.A.," Trump said in a Truth Social post on Monday.

Bay Street closed weak on Friday as investors parsed reports showing unexpected job shedding in Canada against the strong nonfarm payroll numbers in the U.S.

The benchmark S&P/TSX Composite Index settled at 36,513.80, down by 119.32 points or 0.33%. The Canadian market remained closed on Monday for Labor Day.

Asian stocks ended mostly lower on Tuesday as investors looked forward to the release of crucial U.S. inflation data this week for additional clues on the Federal Reserve's rate trajectory.

Investors also kept a close watch on the conflict in the Middle East after Iran threatened to retaliate against any new U.S. attacks on its assets and Saudi-led coalition forces vowed a resolute response to a wave of attacks from Houthi rebels.

European stocks are turning in a mixed performance in cautious trade amid rising geopolitical tensions and higher oil prices. Prospects of interest rate hike by the European Central Bank this week weigh as well on sentiment.

In commodities, West Texas Intermediate crude oil futures are up $2.30 or 2.5% at $93.78 a barrel.

Gold futures are down $33.30 or 0.75% at $4,443.30 an ounce, while Silver futures are up $0.052 or 0.08% at $66.800 an ounce.