Canadian Market May Open Higher On Energy Strength

(RTTNews) - Canadian shares may open with a positive bias on Monday as the energy sector is likely to see some gains thanks to sharply higher crude oil prices. However, concerns about global economic outlook due to an escalation in tensions in the Middle East could hurt sentiment and limit market's upside.

Fed Chair Kevin Warsh's hawkish tone during his speech at Jackson Hole Economic Symposium last week may continue to weigh on investor sentiment.

Warsh noted that inflation remains elevated and there might be a need to tighten policy if inflation does not show signs of easing.

In Middle East news, American forces targeted two rocket launches on Iran's Larak Island, killing and wounding several Iranian fighters and civilians. Washington "took limited, precise action against IRGC minelaying forces posing an imminent threat in the Strait of Hormuz," the U.S. Central Command said.

Iran's Islamic Revolutionary Guard Corps (IRGC) said it subsequently launched attacks on U.S. military bases in Jordan.

West Texas Intermediate Crude oil futures are up $3.00 or 3.5% at $86.40 a barrel.

Gold futures are down $22.20 or 0.49% at $4,507.70 an ounce, while Silver futures are down $0.259 or 0.38% at $68.045 an ounce.

Bay Street ended weak on Friday as investors refrained from big moves amid the intense Canada-U.S. tariff war that began last weekend. The release of Gross Domestic Product data indicating a rise in annualized growth rate to 3.30% limited the decline.

The benchmark S&P/TSX Composite Index traded firmly negative for much of the trading session before settling at 36,553.92, down by 280.33 points or 0.76%.

Asian stocks turned in a mixed performance on Monday as renewed Middle East tensions and Fed Chair Kevin Warsh's hawkish Jackson Hole remarks in the face of rising inflation risks sapped investors' appetite for risk.

Iran launched attacks on American forces stationed in Jordan after U.S. forces targeted two Iranian launchers on Larak Island.

The escalation in tensions between Washington and Tehran sent Brent prices surging toward $90 a barrel, reviving inflation and interest-rate concerns.

European stocks are somewhat subdued today with investors staying cautious on inflation and rate concerns as oil prices climbed higher amid escalating tensions in the Middle East.