FX.co ★ Bay Street Likely To Open On Positive Note

The Canadian market is anticipated to start the week on a positive trend on Monday morning, buoyed by the rise in energy stocks due to increasing crude oil prices. However, investor sentiment is expected to remain cautious as the U.S. presidential election approaches on Tuesday, followed closely by the Federal Reserve's monetary policy announcement on Wednesday.

Investors are also keenly observing developments in the Middle East, given the region's ongoing tensions.

On Friday, the Canadian market saw a moderate uptick, driven by notable gains in the technology and consumer discretionary sectors. Strong earnings reports from major U.S. companies, Intel and Amazon, significantly bolstered the positive sentiment on Bay Street.

Market participants took into account the recent Canadian and U.S. economic data as they geared up for key upcoming events: the U.S. presidential election and the Federal Reserve's policy announcement.

The S&P/TSX Composite Index reached 24,365.11 by late morning but later retraced some of those gains, eventually closing up by 98.29 points, or 0.41%, at 24,255.16. Despite the day's gains, the index suffered a weekly loss of 0.85%.

Asian stocks showed an upward trend in light trading on Monday, with Japanese markets closed due to the Culture Day holiday. Despite ongoing Middle East tensions and uncertainties surrounding the U.S. presidential election and the Federal Reserve's interest-rate decision, regional markets posted appreciable gains.

China's Shanghai Composite Index surged by 1.17% as investors looked forward to a meeting of China's National People's Congress. It is anticipated that this meeting will unveil a new fiscal stimulus package aimed at stabilizing the economy through local government debt swaps and capital infusions into banks.

In Europe, stocks are broadly advancing on Monday afternoon, after an uncertain start earlier in the day. As investors prepare for the U.S. presidential election and the Federal Reserve's policy update, they are largely focusing on individual stocks, reacting to corporate earnings announcements.

In the commodities market, West Texas Intermediate Crude oil futures have risen by $2.15 or 3.1%, reaching $71.64 per barrel. Gold futures have edged up slightly to $2,750.20 an ounce, while silver futures have increased by $0.234 or 0.71%, sitting at $32.915 an ounce.