Bay Street is likely to open on a positive note

(RTTNews) – Canadian stocks are likely to open Monday morning on a positive bias, extending recent gains. While positive signals from Asia and Europe could support sentiment, business volume is likely to remain subdued given sluggish commodity prices and a Memorial Day holiday in the US market.

Certain profit-taking is not excluded.

The Canadian market ended on a firm note on Friday, extending its winning streak into a sixth session as easing concerns about rate hikes and data showing a slowdown in US core consumer price growth in April underpinned sentiment.

The benchmark S&P/TSX Composite Index, which rose , ended up 216.40 points, or 1.05%, at 20,748.58.

Asian equities rallied on Monday, the dollar weakened slightly and US Treasury yields fell amid signs that US inflation may have peaked. China’s easing of COVID-19 restrictions also boosted sentiment ahead of a meeting of European Union countries to agree on Russian oil import sanctions.

European stocks are broadly higher on Monday after authorities in Shanghai rolled out a total of 50 stimulus measures to support the local economy, which has been hit hard by the restrictions.

In commodities trading, West Texas Intermediate crude oil futures are up $0.68, or 0.59%, to $115.75 a barrel.

Gold futures are up slightly to $1,852.20 an ounce while silver futures are down slightly to $22.085 an ounce.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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