Bay Street Likely To Open On Negative Note

(RTTNews) - Canadian stocks look headed for a weak start Monday morning as higher oil prices amid Middle East tensions, and U.S. President Donald Trump's fresh threat on European cars and trucks are likely to weigh on sentiment.

Iran's navy has reportedly said that it has prevented US ships entering the Strait of Hormuz, after Trump said the US military would help guide stranded vessels today.

Meanwhile, US has denied Iranian state media claims that a US vessel was hit by missiles from Iran, adding, "No U.S. Navy ships have been struck."

West Texas Intermediate Crude oil futures are up $2.10 or 2.07% at $104.04 a barrel.

Gold futures are down $72.20 or 1.56% at $4,572.30 an ounce, while Silver futures are down $2.446 or 3.2% at $73.985 an ounce.

Canadian stocks ticked lower on Friday amid the ongoing Strait of Hormuz blockade, while reports indicating that Iran has sent a fresh peace proposal to the U.S. to end the gulf war limited the losses.

The benchmark S&P/TSX Composite Index settled at 33,891.18, down by 73.15 points or 0.22%.

Asian markets gained on Monday, tracking Wall Street's strong performance on Friday attributed mainly to strong corporate earnings. However, the geopolitical stress from the Middle East conflict capped gains. Markets in China and Japan were closed for holidays.

The major European markets are trading weak amid concerns over Middle East tensions, and U.S. President Donald Trump's threat that he would raise tariffs on EU cars and trucks to 25% from the existing 15% levy.