The Canadian stock market looks headed for a weak start Tuesday morning, weighed down by falling crude oil prices and sharply lower Nasdaq futures.
Rising tensions between the U.S. and China, and concerns about a surge in coronavirus cases in several parts of Europe are likely to hurt as well.
The market ended with a sharp loss on Friday. The benchmark S&P/TSX Composite Index slid 230.88 points or 1.4% to settle at 16,218.01, after losing about 1.5% a session earlier. The index posted a loss of nearly 3% last week.
In company news, Cogeco Inc.’s controlling family has reiterated its rejection of a plan by Altice USA to acquire the business for US$7.8 billion (C$10.3 billion). The largest shareholder of Cogeco Inc and Cogeco Communication Inc has said that he and his family would net let go of their stake in the companies.
“Our shares are not for sale. Our refusal is not a negotiating position, it is definitive,” said Louis Audet, the Chairman of Cogeco Communications Inc.
Asian stocks closed higher on Tuesday despite worries about U.S.-China tensions and data showing a sharper than estimated contraction of the Japanese economy.
European stocks are lower today, hurt be reports showing a jump in coronavirus cases in the region, especially in the U.K., Germany and France, and data showing a sharp contraction in Euro Zone GDP in the second quarter.
The Canadian and U.S. markets remained shut on Monday for Labor Day holiday.
In commodities, West Texas Intermediate Crude oil futures for October are plunging $2.37 or almost 6% a5 $37.40 a barrel.
Gold futures for December are down $10.10 or 0.52% at $1,924.20 an ounce. Silver futures are down $0.072 or 0.27% at $26.640 an ounce, while Copper futures are lower by $0.0255 or 0.65% at $3.0365 per pound.
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