logo
Plus   Neg
Share
Email

Bay Street Seen Opening On Positive Note

Higher stock and commodities futures amid positive developments on U.S. stimulus bill, drop in new coronavirus cases and easing bond yields point to a firm start for Canadian stocks on Monday.

Positive news on the vaccine front with Johnson & Johnson receiving the USFDA nod for emergency use of its Covid vaccine may also aid sentiment.

The U.S. House passed the Covid relief bill proposed by President Joe Biden on Saturday and the Bill has now been sent to the Senate. With Republicans questioning the need for another massive spending package, the Democrats are looking to clear it on their own on the Senate and send it to the President's desk before the unemployment aid programs expire by the end of second week.

The yield on the U.S. 10-year Treasury dropped to around 1.43%, well off a high of 1.55% seen last week.

The Canadian market ended notably lower on Friday, led by losses in materials, energy and financial sectors. The benchmark S&P/TSX Composite Index ended with a loss of 163.28 points or 0.9% at $18,060.26.

CAE Inc. (CAE.TO) agreed Monday to acquire the military training division of aerospace and defense technology firm L3Harris Technologies Inc. (LHX) for $1.05 billion, subject to customary adjustments. The acquisition will expand CAE's training systems integrator by diversifying its training and simulation leadership in the air domain, complementing land and naval training solutions, and enhancing training and simulation capabilities in space and cyber.

Equinox Gold Corp. (EQX.TO) announced that it has entered into an agreement with an affiliate of the Orion Mine Finance Group to acquire 10% from Orion's current interest in the Hardrock Mine Project for consideration of $51 million plus certain contingent payment obligations.

A report on Canada's current account for the fourth quarter is due at 8:30 AM ET.

Data on Canadian manufacturing activity in the month of February is due out at 9:30 AM ET.

Asian stocks ended broadly higher on Monday amid optimism about vaccine rollout and economic recovery.

European markets are notably higher on expectations of faster economic recovery.

In commodities, West Texas International Crude oil futures for April are gaining $0.53 or 0.86% at $62.03 a barrel.

Gold futures are up $10.10 or 0.58% at $1,738.90 an ounce, while Silver futures are rising $0.445 or 1.68% at $26.885 an ounce.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT