The Canadian stock market is likely to open lower on Monday, weighed down by falling crude oil prices amid concerns over energy demand due to the surge in coronavirus cases.
Quarterly earnings announcements and other corporate news may provide some direction to the market.
The Canadian market ended on a firm note on Friday, lifted by gains in healthcare and financial sectors. The benchmark S&P/TSX Composite Index ended with a gain of 70.69 points or at 19,102.33, after scaling a low of 19,033.54 and a high of 19,126.13 intraday. The index shed about 1.29% in the week.
Canadian Pacific Railway Limited (CP.TO) welcomed the Surface Transportation Board (STB) decision to uphold waiver for a merger between Canadian Pacific Railway and Kansas City Southern. CP is seeking approval from the STB for the merger with KCS. The STB review is expected to be completed by the middle of 2022.
Fortuna Silver Mines Inc. (FVI.TO) and Roxgold Inc. (ROXG.TO) have entered into a definitive agreement under which Fortuna will acquire all the issued and outstanding securities of Roxgold, in a deal worth approximately C$1.1 billion. Roxgold shareholders will receive 0.283 common shares of Fortuna and C$0.001 for each Roxgold common share held.
Asian stocks ended mixed on Monday as investors kept a wary eye on the Covid-19 surge and awaited cues from key central bank meetings. Chinese and Hong Kong shares fell amid fears that further tightening of credit conditions would drag on growth, while markets in India and Japan closed higher despite deteriorating Covid-19 situation in these countries.
European markets are a bit sluggish in lackluster trade amid Covid-19 worries and survey results from the ifo Institute that showed German business morale improved by less than expected in April amid a third wave of infections and bottlenecks in production.
In commodities, West Texas Intermediate Crude oil futures for June are down $0.97 or 1.51% at $61.17 a barrel.
Gold futures are lower by $3.70 or 0.21% at $1,774.10 an ounce, while Silver futures are down marginally at $26.065 an ounce.
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