Bay Street Likely To Open Higher

Canadian shares are likely to open on a positive note Tuesday morning, tracking higher commodity prices and somewhat steady European markets.

Concerns about the spread of the coronavirus variants and fresh lockdown measures in several countries may weigh on sentiment and limit market's upside.

Despite coming off the day's lows, the Canadian market ended on a very weak note on Monday, as rising worries about the impact of the fast spreading variants of the coronavirus on economic recovery. Crude oil's sharp plunge following the OPEC+ agreeing on an output increase triggered a sell-off in the energy section, contributing significantly to market's tumble.

The benchmark S&P/TSX Composite Index, which plummeted to 19,605.94, losing about 380 points in the process, eventually ended the session with a loss of 259.09 points or 1.3% at 19,726.45. On Friday, the index ended nearly 1% down.

PrairieSky Royalty Ltd. (PSK.TO) announced after trading hours on Monday that it posted a net profit of $27.5 million or $0.12 per share in the second quarter of this financial year, as against net loss of $0.4 million in the year-ago quarter. In the first quarter, the company posted a net profit of $18.4 million or $0.08 per share.

Canadian National Railway (CNR.TO) is scheduled to announce its quarterly results later today.

Asian stocks ended broadly lower on Tuesday as concerns around the global spread of the Delta strain and rising tensions between China and the West dented sentiment. Investors also kept an eye on Treasury yields, with U.S. President Joe Biden adding his voice to assurances that inflationary pressures will be temporary.

European markets opened on a firm note, rebounding strongly after recent losses, and despite paring substantial portion of their early gains, remain in positive territory early afternoon.

In commodities, West Texas Intermediate Crude oil futures for September are up $0.33 or 0.5% at $66.75 a barrel.

Gold futures are gaining $8.20 or 0.47% at $1,817.60 an ounce, while Silver futures are up $0.051 or 0.2% at $25.195 an ounce.

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