Canadian stocks are poised for a potential uptick on Monday, driven by anticipated buying in the energy and materials sectors, supported by robust crude oil and metal prices. As the Canadian inflation figures are set to be released this week, and with some ambiguity surrounding the Federal Reserve's forthcoming policy decisions, investors may display a degree of prudence.
Attention is also drawn to Nvidia's quarterly earnings report, scheduled for Wednesday.
Friday saw a significant dip in the Canadian market, particularly due to declines in the energy, industrials, and materials sectors, coupled with uncertainties regarding the Federal Reserve's interest rate strategy. The S&P/TSX Composite Index, which commenced at 25,004.49 and plummeted to a midday low of 24,814.91, concluded the day at 24,890.68, reflecting a decrease of 158.99 points or 0.63%. Despite this, the index recorded a slight increase over the week.
Asian equities presented a mixed picture on Monday, as renewed apprehensions about potential tariffs from the Trump administration and uncertainty over the Fed's policy dampened sentiment. Hong Kong's Hang Seng index saw moderate gains following the announcement by China's securities regulator to broaden the range of stocks eligible for trade via Stock Connect.
Meanwhile, Japanese markets experienced a sharp decline after Bank of Japan Governor Kazuo Ueda reiterated the possibility of further rate hikes. The central bank is also seeking more clarity on the economic policies of the incoming U.S. administration under President-elect Donald Trump. Additionally, investors are assessing discouraging data indicating Japan's core machinery orders have fallen for a second successive quarter.
European markets showed a lack of clear direction on Monday, with investors closely watching for insights from European Central Bank policymakers, including a scheduled address from ECB President Christine Lagarde, concerning interest rate projections. Persistent concerns about the potential fallout from U.S. economic policies under President-elect Donald Trump added to the cautious sentiment.
In commodity markets, West Texas Intermediate Crude oil futures have risen by $0.28 or 0.56%, reaching $67.40 per barrel. Gold futures have increased by $28.90 or 1.12% to $2,599.00 an ounce, and Silver futures have climbed by $0.473 or 1.55% to $30.905 an ounce.
