(MENAFN- ProactiveInvestors) TSX futures could start the week with a lower open as crude oil futures pushed lower in electronic trading as another investment bank slashed its price forecasts for the commodity and as Chinese stocks plunged the most in six years amid a margin crackdown by regulators.
The Toronto stock market shot up well over 250 points Friday as energy stocks responded to some stability in oil prices last week and base metals started to recover after a severe plunge in copper prices last Wednesday.
The S&P/TSX composite index surged 267.59 points or 1.9% to close at 14309.41 while the TSX Venture Exchange popped 8.32 points to 667.56. All but one of the Toronto subgroups rose with the energy sector jumping 6% while metals and mining picked up 5.8%.
On Monday US stock markets were closed for the Martin Luther King Jr. holiday but it was business as usual for Globex electronic trading and for overseas markets. Oil gold and other futures contracts listed on Globex will all trade electronically Monday as CME trading floors will be closed.
On the New York Mercantile Exchange light sweet crude futures for delivery in February traded at $48.17 a barrel in recent trade down 63 cents in the Globex electronic session. March brent crude on London's ICE Futures exchange fell 1% to $49.63 a barrel.
Nymex February crude finished up 0.7% last week snapping a seven-week losing streek while brent crude for March lost 2.2% falling for eight straight weeks.
JP Morgan today cut its forecast for oil prices this year to $49 a barrel saying it expects to see a U-shaped recovery in oil prices rising to $90 a barrel in 2019.
Gold prices also slipped Monday after a stellar performance last week. Gold for February delivery shed $2 or 0.2% to $1274.90 an ounce in electronic trading.
Meanwhile Chinese stocks plummeted with the Shanghai Composite Index falling 7.7% to close at 3116.35 posting its biggest daily percentage decline since June 2008. The China Securities Regulatory Commission announced Friday that punishments for a dozen brokerage firms that that violated margin trading rules including allowing customers to delay margin repayments by longer than it is currently called for.
Adding to this data released Sunday showed Chinese new home prices in December fell an average 4.3% year-on-year in 68 of the 70 major cities monitored.
European markets meanwhile rose modestly Monday helped by gains from Swiss stocks after the fallout last week but Greek shares fell on concerns about the country's upcoming general election.
Investors were also more confident about a potential announcement regarding a quantitative easing program by the European Central Bank at the next policy meeting on Thursday.
In corporate activity (TSE:G) said it has agreed to acquire () for a total of C$526 million as it expands its holdings in the Porcupine district. Probe's main asset is the Borden gold project near Chapleau in Ontario.
CanElson () has reduced its 2015 capital program by 80% while slashing its dividend by 50% to 3 cents a share to "weather the impact of sustained low commodity prices."
Canada () has extended a special offer to Target Canada employees given the closure announcement last week. The company has extended an open invitation to Target Canada head office employees for a meet and greet with executives this week to help match good candidates with their next career opportunity. It also has offered affected employees the Canada employee discount for a period of 16 weeks.
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