Bay Street Seen Opening On Negative Note

(RTTNews) - Lower Canadian and U.S. futures and weak European markets amid rising geopolitical tensions following U.S. President Donald Trump's new tariff threats on European countries point to a negative open on Bay Street Monday morning.

Materials stocks may climb higher, tracking gains in precious metals and help limit market's downside a bit. Canadian inflation data may significantly impact investor sentiment.

Canada inflation data for December 2025 is due at 8:30 AM ET.

The headline inflation in Canada came in at 2.2% in November, unchanged from a month earlier. Inflation was expected to edge up to 2.3% in the month. The consumer price index increased 0.1% in November over the previous month.

Core inflation remained firm at 2.6% for a third consecutive month.

In geopolitical news, the U.S. President doubled down on his plan to acquire Greenland, saying NATO had warned Denmark for years about the "Russian threat" to Greenland and claimed Copenhagen had failed to act.

"Now it is time, and it will be done!!!" Trump wrote in a post on his Truth Social platform ahead of this week's World Economic Forum Annual Meeting in Davos.

The U.S. President's announcement of a 10% tariff on several EU countries from next month, which raises the tariff on all imports to US to 25%, and reports that EU is considering retaliatory move against the U.S. weighed on global stocks.

The EU is reported to be considering tariffs of 93 billion euros of US goods or restricting US firms' access to its internal market.

The Canadian market ended slightly up on Friday after a volatile session as traders assessed the benefits of Canada-China trade deals following Prime Minister Mark Carney's four-day visit to foster ties in trade, agriculture, and international security.

The benchmark S&P/TSX Composite Index settled with a gain of 11.63 points or 0.04% at 33,040.55. The index gained about 1.3% in the week.

Asian stocks closed weak on Monday on tariff concerns after U.S. President Donald Trump announced more levies on European countries. Investors also digested mixed Chinese economic data.

The major European markets are down sharply in negative territory today as rising geopolitical tensions weigh on sentiment.

In commodities trading, West Texas Intermediate Crude oil futures are down $0.66 or 1.11% at $58.78 a barrel.

Gold futures are gaining $80.70 or 1.75% at $4,676.10 an ounce, while Silver futures are up $4.763 or 5.38% at $93.300 an ounce. Copper futures are up $0.0333 or 0.57% at $5.8643 per pound.