Canadian shares are likely to open on a positive note Monday morning, tracking cues from firm European markets and higher crude oil and gold prices.
Optimism about strong quarterly earnings will support the market. Investors will also be looking ahead to the Federal Reserve meeting on Wednesday for clues on the timing of its first interest rate hike since December 2018.
Fed Chair Jerome Powell has already acknowledged substantial further progress on inflation (price stability) and also maximum employment for QE tapering.
Markit Economics will release a report on Canadian manufacturing activity in the month of October, at 9:30 AM ET.
Golden Star Resources Ltd. (GSC.TO) and Chifeng Jilong Gold Mining Co., Ltd. have entered into a definitive agreement, pursuant to which Chifeng has agreed to acquire all of the issued and outstanding common shares of Golden Star.
Cargojet Inc. (CJT.TO) reported adjusted EBITDA of $70.9 million for the third-quarter, compared to the third quarter 2020 adjusted EBITDA of $69.8 million.
Copper Mountain Mining Corporation (CMMC.TO) has reported third-quarter net income of $25.8 million, or $0.08 per share.
The Canadian market ended weak on Friday amid concerns supply chain disruptions could significantly impact revenues of companies in the near term. Investors digested a slew of earnings updates, and data on Canadian GDP. Weak earnings updates from top U.S. firms Apple Inc. and Amazon weighed on sentiment.
The benchmark S&P/TSX Composite Index ended with a loss of 160.46 points or 0.76% at 21,037.07, the day's low. The index, which saw a long 14-session winning streak that was broken last Tuesday, gained as much as 4.8% in October.
Asian stocks ended mixed on Monday as Chinese data proved to be a mixed bag and investors avoided big bets ahead of the Federal Reserve's monetary policy meeting this week.
European stocks are in positive territory amid earnings optimism. Investors are also looking ahead to the upcoming policy meetings of The Federal Reserve and the Bank of England.
In commodities, West Texas Intermediate Crude oil futures for December are up $0.30 or 0.35% at 83.87 a barrel.
Gold futures are gaining $4.00 or 0.23% at $1,787.90 an ounce, while Silver futures are down $0.019 or 0.08% at $23.930 an ounce.
On Thursday, attention turns to the Bank of England policy meeting. Market participants are pricing in a rate hike to curb inflation but economists narrowly predict no change.
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