Everything You Need to Know on Monday: Fortuna Silver Mines Up 3% As Reports 20% Increase In Q1 Production YOY

Good morning mooers! Here are things you need to know about today's market:

● S&P/TSX 60 Index Standard Futures are trading at 1,342.60 ,up 0.12%.

● Expectations of a June interest rate cut solidify as cracks widen in labour market

● Crude oil prices fall amid easing Middle East tensions but market tightness looms in Q2

● Spring housing market surge unlikely as affordability, cost of living weigh on buyers

● Stocks to watch: Fortuna Silver Mines, Karora Resources

Today, the Canadian dollar is trading at 73.55 cents US, a slight decrease from Friday.

The S&P/TSX 60 Index Standard Futures (SXF) are currently trading at 1,342.60, which is up 0.12% from the previous close.

Canada's unemployment rate jumped to 6.1 per cent in March as more people looked for work and job growth stalled — solidifying expectations of a June interest rate cut.

"The cracks that had been emerging within the Canadian labour market suddenly got a lot wider," wrote CIBC's executive director of economics, Andrew Grantham, in a client note.

The March jobs report is the last piece of major economic data the Bank of Canada has to consider ahead of its next interest rate decision on Wednesday.

Investors will be looking for any hints from the central bank on when it plans to begin lowering its key rate, which currently sits at five per cent.

Economists had been betting the Bank of Canada would deliver the first rate cut in June or July, however, expectations are now leaning more toward June.

Nathan Janzen, RBC's assistant chief economist says the jobs data throws some cold water on the strong economic growth figures from early 2024.

"For (the BoC), it'll be another reason to take the very strong GDP numbers that we've had early in 2024, with a bigger grain of salt," he said.

Crude oil prices retreated early Monday amid easing tensions in the Middle East, with Israel withdrawing soldiers from Gaza and committing to renewed talks on a potential ceasefire.

Brent crude fell 1.3% to US$90 per barrel and West Texas Intermediate crude lost 1.3% to US$85.75/b at last look early Monday.

"It appears the catalyst is Israel saying it has withdrawn all troops except one brigade from the Southern Gaza strip, likely in response to growing international pressure and to deescalate tensions after it killed senior Iranian commanders in Syria last week," Reuters reported IG market analyst Tony Sycamore as saying Monday.

Prices remain relatively elevated as geopolitical risks remain an ongoing issue for the oil market after a period of instability, ANZ Bank said in a Monday note.

Stricter implementation of production quotas by OPEC members should see output fall in the second quarter, the bank noted. This tightening should support crude oil prices in coming months, the bank noted.

After five straight holds of the Bank of Canada's key interest rate that followed its hiking cycle of more than a year, economists say a rebound awaits the national housing market — but don't expect a big surge just yet.

The central bank is expected to again hold its key rate steady when it announces its decision Wednesday, but it's unclear what direction it will take next.

With modest cuts likely in store later this year — some forecasts call for those to begin as soon as June — it could take months before buyers are confident enough to come crawling back from the sidelines.

That uncertainty may keep some buyers cautious throughout the spring, said TD Bank economist Rishi Sondhi.

"I think it's a bit of a muddy backdrop there and maybe that might be restraining some of the activity," he said.

But Sondhi said Canada's housing market is "akin to a bit of a coiled spring," noting sales activity and prices typically jump when there's a shift "that jolts the market" such as an interest rate cut.

The company reiterated its 2024 annual production guidance range of 457,000 to 497,000 gold equivalent ounces.

The company repaid US$40 million on its credit facility in the first quarter, resulting in a total of US$121 million paid since the third quarter of 2023.

Fortuna at last look rose 3.4% in US pre-market trading on Monday.

Karora shareholders will receive 2.5241 Westgold fully paid ordinary shares, A$0.68 (C$0.611) in cash, and 0.30 of a share in a new company to be spun out from Karora for each Karora share held at the closing of the deal. The offer consideration represents about A$6.60 (C$5.902) per Karora share based on Westgold's closing share price on the ASX of A$2.28 on April 5.

Source: BNN Bloomberg, Financial Post, MT Newswire