Canadian shares are likely to see a gap down opening on Monday, tracking cues from Asian and European markets, where stocks plunged sharply amid mounting worries about the spread of coronavirus outside china.
Energy stocks may see a sell-off following a sharp plunge in crude oil prices.
South Korea raised its virus alert to the highest level, while Italy became Europe's epicenter for coronavirus cases over the weekend. Iran has confirmed an uptick in infections.
According to reports, Italian bank Intesa Sanpaolo has decided to close 4 branches in the country as the government imposed strict quarantine restrictions in two northern "hotspot" regions close to Milan and Venice.
Following the move, about 50,000 people cannot enter or leave several towns in Veneto and Lombardy for the next two weeks without special permission.
On Friday, the benchmark S&P/TSX Composite Index ended down 100.53 points, or 0.56%, at 17,843.53, slightly off the day's low of 17,833.11.
Bank stocks will be in focus, with Bank of Montreal (BMO.TO), Bank of Nova Scotia (BNS.TO), Toronto-Dominion Bank (TD.TO), National Bank of Canada (NA.TO) and Canadian Imperial Bank of Commerce (CM.TO) set to announce their quarterly earnings this week. Royal Bank of Canada (RY.TO) has reported its earnigs last week.
Teck Resources Ltd. (TECK.B.TO) said it has withdrawn its application for a massive oilsands mining project, citing the political discourse over climate change.
The company said it will take a $1.13-billion writedown on the Frontier project in Alberta, which was expected to create nearly 10,000 jobs and about $12 billion in federal income and capital taxes, but was also expected to produce about four million tonnes of greenhouse gas emissions per year over 40 years.
MTY Food Group Inc. (MTY.TO) reported net income of $20.7 million or $0.83 per share for the fourth quarter of 2019. Net income was up 56% compared to year-ago quarter.
Asian stocks tumbled on Monday as investors fretted about a surge in the number of new coronavirus cases reported outside China and its impact on the global economy. South Korea raised its coronavirus alert to the highest level, while Italy and Iran confirmed an uptick in coronavirus infections.
European stocks are plunging sharply following contagion fears gripping the market after Italy became Europe's epicenter for coronavirus cases over the weekend.
In commodities, West Texas Intermediate Crude oil futures for April are down as much as $2.14, or about 4%, at $51.24 a barrel.
Gold futures for April are climbing up $34.50, or 2.1%, at $1,683.30 an ounce.
Silver futures for March are rising $0.210, or 1.13%, at $18.740 an ounce, while Copper futures for March are down $0.0440, or 1.7%, at $2.5640 per pound.
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