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Bay Street Likely To Open On Negative Note

Canadian shares look headed for a weak start Monday morning, weighed down by falling commodity prices and a sell-off in European markets amid rising concerns about inflation and fears over sharp interest rate hikes.

Most of the markets across Europe are down sharply. Among the major indexes in Europe, the U.K.'s FTSE, Germany's DAX, France's CAC 40 and the pan European Stoxx 600 are down 1.8 to 2.1%.

The Dow, Nasdaq and the S&P futures are also down sharply.

In Canadian corporate news, Ritchie Bros. (RBA.TO) has sold over C$204 million worth of equipment in a massive six-day Edmonton, AB auction. More than 23,800 bidders from 55 countries registered for Canada's largest equipment auction of the year.

Ensign Energy Services Inc. (ESI.TO) reported adjusted EBITDA of $70 million for the first quarter of 2022, a 40% increase from Adjusted EBITDA of $49.9 million it had posted in the first quarter of 2021.

First Quantum Minerals (FM.TO) announced on Sunday that its board has approved plans for a $1.25 billion expansion of the company's Kansanshi copper mine in Zambia.

On the economic front, data on Canadian building permits for the month of March is due at 8:30 AM ET.

The Canadian market ended weak on Friday after a choppy session. The benchmark S&P/TSX Composite Index fell 62.89 points or 0.3% to 20,633.28, extending the sharp pullback seen in the previous session.

Asian stocks ended sharply lower on Monday amid anxiety over rising inflation and interest rates. Data showed China's export growth slowed to its lowest rate since June 2020 in April and imports flattened, highlighting downside risks to global growth stemming from the Ukraine war and the Shanghai lockdown.

European stocks are plunging sharply on fears of an economic recession, rising interest rates and on the severe restrictions in China's Shanghai to contain the spread of Covid-19. Weak economic data from China is hurting as well.

In commodities trading, West Texas Intermediate Crude oil futures are down $2.73 or 2.5% at $107.03 a barrel.

Gold futures are down $24.10 or 1.28% at $1,858.70 an ounce, while Silver futures are down $0.592 or 2.65% at $21.775 an ounce.

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