Bay Street Seen Opening Higher, But Weak Commodities May Weigh

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(RTTNews) – Higher U.S. futures and gains in European markets ahead of a fresh round of U.S.-China trade negotiations point to a slightly positive start for Canadian shares on Monday.

However, weak commodity prices, global growth worries and uncertainty about Brexit may weigh on sentiment and limit market’s upside.

Earnings reports will provide some direction to the market.

After trade talks between the U.S. and Chinese official last week ended without any breakthrough, a fresh round of trade negotiations take place this week.

A preliminary lower level talks commenced today and later in the week, U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, along with top officials are scheduled to be in Beijing for negotiations.

Meanwhile, there is a possibility of another government shutdown in the U.S. after talks between Democratic and Republican lawmakers failed over the issue of immigrant detention policy.

On Friday, the benchmark S&P/TSX Composite Index ended down 70.03 points, or 0.45%, at 15,633, after falling to a low of 15,567.84.

In company news, Restaurant Brands International Inc. (QSR.TO) reported adjusted Diluted EPS of $2.63 versus $2.10 in prior year.

Morgan Stanley (MS) announced today that it agreed to acquire Solium Capital Inc. (SUM.TO) to create an industry leader in workplace wealth solutions and stock plan administration services. Solium is a provider of software-as-a-service (SaaS) for equity administration, financial reporting and compliance.

Morgan Stanley will acquire all of the issued and outstanding common shares of Solium for C$19.15 per share in cash, representing a total equity value of about C$1.1 billion or $0.9 billion.

Trilogy Metals Inc. (TMQ.TO) reported full year net loss of $21.8 million, or $0.18 basic and diluted loss per common share, compared to a net loss of $21.1 million, or $0.20 basic and diluted loss per common share, a year earlier.

Asian markets ended mixed after lackluster session. Investors were wary of picking up stocks amid concerns about global economic slowdown.

Despite Brexit uncertainty and weak British GDP data, European markets were rising with investors looking ahead to a new round of trade talks between the U.S. and China.

In commodities, crude oil futures for March were down $0.52, or 0.9%, at $52.20 a barrel.

Gold futures for April were declining $7.95, or 0.6%, at $1,310.55 an ounce.

Silver futures for March were down $0.104, or 0.66%, at $15.705 an ounce, while Copper futures for March were easing by $0.019, or 0.68%, at $2.7915 per pound.