The Canadian market is expected to open positively on Monday morning, albeit with modest gains as investors anticipate the Bank of Canada's upcoming interest rate decision.
The Canadian central bank is set to announce its decision on Wednesday, June 6. Market speculation suggests a potential quarter-percentage-point cut in interest rates. Meanwhile, the European Central Bank is also scheduled to release its monetary policy decision on Thursday.
Data on Canadian manufacturing activity for May will be released at 9:30 AM ET. The S&P Global Canada Manufacturing PMI fell by 0.4 points to 49.4 in April, marking the twelfth consecutive month of contraction.
Colliers International Inc. (CIGI.TO) announced a definitive agreement to acquire Englobe Corporation, a Canadian multi-discipline engineering, environmental, and inspection services firm. Colliers will purchase a significant controlling interest for approximately $475 million USD in cash.
On Friday, the Canadian market ended strongly, buoyed by late-afternoon buying and optimism about potential rate cuts by both the Bank of Canada and the Federal Reserve. The S&P/TSX Composite Index closed with a solid gain of 197.41 points or 0.89%, ending the day at 22,269.12. For the week, the index saw a slight decline of 0.23%.
Asian markets surged on Monday, driven by soft U.S. inflation data and a private survey indicating that China's factory activity grew at its fastest pace in nearly two years due to production gains and new orders.
Indian markets led regional gains, bolstered by exit polls suggesting Prime Minister Narendra Modi is likely to secure a third consecutive term in office. Should Modi win, he will become the second Indian leader to achieve this milestone, following Jawaharlal Nehru.
European stocks are also in positive territory, influenced by expectations that the European Central Bank will announce its first interest rate cut of the cycle on Thursday. Favorable data showing an improvement in Eurozone manufacturing activity in May is boosting sentiment further.
In commodities, West Texas Intermediate Crude oil futures have increased by $0.12 or 0.16%, trading at $77.11 per barrel. Gold futures are up by $6.00 or 0.26%, reaching $2,351.80 an ounce, while Silver futures have risen by $0.125 or 0.41%, currently standing at $30.565 an ounce.
