(RTTNews) - The Canadian market is likely to open on a weak note Tuesday morning as lower crude oil prices may weigh on energy stocks. Movements are likely to be a bit volatile with investors looking for directional clues.
Geopolitical news will remain in focus, and investors are also likely to closely monitor the movement of Hurricane Milton, which is forecast to make a landfall in Florida on Wednesday. Florida ports have reportedly imposed restrictions on vessel navigation as Hurricane Milton rapidly intensified.
Most energy infrastructure on the U.S. Gulf Coast, including oil and gas production facilities, liquefied natural gas (LNG) plants and refineries, is expected to be out of the storm path, but the closure of terminals could temporarily disrupt exports and imports.
The Canadian market ended modestly lower on Monday, weighed down by losses in utilities and technology sectors. Several stocks from healthcare, consumer discretionary and materials sectors also closed weak.
Escalating Middle East tensions hurt sentiment. With a slew of crucial data, including Canada's unemployment report and U.S. consumer price inflation report, due later in the week, the mood remained cautious.
Israeli defense forces intensified air strikes targeting Gaza and the Lebanese capital of Beirut simultaneously on the first anniversary of Hamas' cross-border attack in Israel, which triggered the Middle East war.
The benchmark S&P/TSX Composite Index ended down 60.12 points or 0.25% at 24,102.71 after scaling a low of 23,988.17 and a high of 24,173.06 intraday.
Asian stocks declined on Tuesday, with Hong Kong markets leading regional losses as China's National Development and Reform Commission pledged more measures to boost the Chinese economy but gave little in the way of details.
Investors looked ahead of key U.S. inflation readings and the release of the Fed's latest meeting minutes this week for additional clues on the Fed's rate trajectory.
The major European markets are weak with stocks falling to two-week lows amid persisting worries about Middle East tensions. Also, a lack of new plans for major stimulus in China hurts as well.
In commodities, West Texas Intermediate crude oil futures are down $1.70 or 2.19 percent at 75.44 a barrel.
Gold futures are gaining $5.30 or 0.2% at $2,670.50 an ounce, while Silver futures are down $0.354 or 1.11% at $31.650 an ounce.
