FX.co ★ Bay Street Seen Opening On Mixed Note

Canadian shares are anticipated to open with a mixed sentiment this Monday morning as traders predominantly take a cautious approach ahead of the New Year, seeking directional indicators. Although crude oil prices have made slight gains, metal prices remain somewhat subdued. European stocks are experiencing varied outcomes.

Recent data from the Canadian Federation of Independent Business indicates a decline in the CFIB's Business Barometer, which gauges the 12-month forward business expectations in Canada. It decreased to 56.4 in December, down from an upwardly revised 59.8 in the previous month—the peak level since mid-2022.

The Canadian market closed on a downbeat note last Friday, impacted by losses in technology stocks. This was in line with a downturn in the tech sector on Wall Street, prompted by rising yields on the 10-Year U.S. Treasury Note, which reached nearly an eight-month high.

The benchmark S&P/TSX Composite Index concluded the day down 50.42 points or 0.2%, settling at 24,796.40. It fluctuated between a low of 24,701.20 and a high of 24,876.75 throughout the day.

In Asia, stock markets ended mixed on Monday. A cautious sentiment prevailed as the year draws to a close. U.S. Treasury yields, at elevated levels, bolstered the dollar in Asian trading, whereas oil and gold prices showed little change.

Markets in Seoul closed lower after authorities requested an arrest warrant for suspended President Yoon Suk Yeol, in connection with his short-lived martial law declaration. Additionally, traders reacted to disappointing data indicating a sharper than expected decline in factory output for November.

European markets are declining amid cautious trading on Monday, following a sell-off in all three major U.S. indices last Friday. This diminished hopes for the traditional Santa Claus rally, driven by worries over increasing bond yields.

As the New Year holiday approaches, traders are preparing for several regional markets to close early on Tuesday. Over the weekend, Robert Holzmann, a European Central Bank Governing Council member, informed Austrian newspaper Kurier that the ECB might postpone its next rate cut due to recent inflationary pressures.

Today's trading in Europe is somewhat subdued, with stock performances mixed as markets engage in the last full trading session of 2024. Most markets are scheduled for early closure on Tuesday in observance of New Year's Eve and will remain closed on Wednesday.

In the commodities sector, West Texas Intermediate crude oil futures have risen by $0.35, or 0.5%, to $70.95 per barrel. Gold futures experienced a marginal increase, settling at $2,632.70 an ounce, while silver futures rose by $0.052, or 0.17%, to $30.020 an ounce.