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Bay Street Likely To Open Weak

Flat U.S. and Canadian stock futures, sluggish commodity prices and weakness in Asian and European markets point to a weak start for Canadian shares on Monday.

With hopes about U.S.-China trade deal fading once again and the U.S. Federal Reserve's monetary policy decision due on Wednesday, the mood is likely to be very cautious in the market. Investors are also looking ahead to the U.S. mid-term elections on Tuesday.

Activity may well remain stock specific with quarterly earnings reports setting the trend.

On Friday, the benchmark S&P/TSX Composite Index ended down 30.87 points, or 0.20%, at 15,119.28.

Crew Energy Inc. (CR.TO) reported net loss of $0.94 million for the third quarter ended September 2018, as against net profit of $2.12 million in the year-ago quarter.

The Second Cup Ltd. (SCU.TO) reported net income of $766,000 or $0.04 per share for the third quarter, as compared to net loss of $2,962,000 or $0.19 per share in the prior year.

Energy Fuels Inc. (EFR.TO) announced it posted net loss of $13.9 million in the quarter ended September 2017, as compared to net loss of $4.88 million in the year-ago quarter.

Pattern Energy Group Inc. (PEGI.TO) reported net loss of $31.5 million for the third quarter of 2018, compared to a net loss of $48.4 million for the same period last year.

Ensign Energy Services Inc. (ESI.TO) reported third quarter revenue of $288.7 million for the third quarter, an increase of 17% from revenue for the third quarter of 2017 of $247.1 million.

Asian markets ended lower on Monday as hopes of an imminent U.S.-China trade deal faded and investors looked ahead to the U.S. mid-term elections as well as the FOMC meeting for cues.

In Asian economic news, China's private sector expanded at the weakest pace in more than two years in October with both services and manufacturing noting weaker performances, survey results from IHS Markit showed.

Bank of Japan Governor Haruhiko Kuroda said that the Japanese economy has clearly improved and the central bank will consider both positive and negative effects of its monetary policy in a balanced manner going forward.

According to the minutes of BOJ's September meeting, domestic demand is expected to continue on an upward trend, while annual inflation is predicted to maintain its gradual climb to the target of 2%.

Meanwhile, activity in Japan's services sector continued to expand in October, and at a faster rate, the latest survey from Nikkei revealed with a PMI score of 52.4, up from 50.2 in September.

European markets were mostly subdued amid fading hopes about a U.S.-China trade deal and due to cautious moves by investors ahead of the U.S. congressional elections.

A report on U.S. services sector activity in the month of October is due at 9.45 AM ET.

The Institute of Supply Management will release its ISM Non-Manufacturing Prices Index and the New Orders Index for October, at 10 AM ET.

In commodities, crude oil futures for December were down marginally at $63.10 a barrel.

Gold futures for December were edging up $0.80, or 0.08%, at $1,231.70 an ounce.

Silver futures for December were declining by $0.066, or 0.44%, at $14.690 an ounce, while Copper futures were down $0.028, or 1%, at $2.775 per pound.

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