TSX Set to Slump at Open

Merger Ahead in the Cannabis Industry

Canada's main stock index was set to open lower on Monday after oil prices fell as higher U.S. output offset efforts by the Organization of the Petroleum Exporting Countries and Russia to tighten supplies.

The S&P/TSX Composite Index gained 35.21 points to close Friday and the week at 16,239.22

The Canadian dollar faded 0.18 cents to 81.03 cents U.S. Monday morning.

March futures slipped 0.3% Monday.

Cannabis producer Aphria Inc. said on Monday it would buy rival Nuuvera Inc for $826 million to expand into Europe, Africa and the Middle East.

National Bank of Canada cut the rating on First Majestic Silver to sector perform from outperform

Desjardins cut the price target on Rogers Communications to $70.00 from $71.00

Canaccord Genuity cut the price target on TSO3 Inc. to $2.75 from $4.25

Officials from the United States, Canada and Mexico will wrap up the sixth of seven planned rounds of talks on the North American Free Trade Agreement in Montreal on Monday, with little sign of agreement on the toughest U.S. proposals to overhaul the $1.2-trillion pact.

ON BAYSTREET

The TSX Venture Exchange recovered 4.68 points to end Friday at 890.80

ON WALLSTREET

U.S. stock index futures were trading lower ahead of Monday's open, as investors paused for breath, after Wall Street posted sharp gains in the previous session. Investors also paid attention to rising interest rates

Futures for the Dow Jones Industrials slipped 48 points, or 0.2%, to 26,556,

S&P 500 futures lost seven points, or 0.2%, to 2,867.50, while futures on the NASDAQ Composite staggered 17.75 points, or 0.3%, at 7,012.50

In the corporate sphere, Lockheed Martin and Seagate Technology reported better-than-expected earnings and revenue.

In politics, the U.S. administration's security team is reportedly looking at options where the government could occupy part of the nation's mobile network, in order to protect itself from China, Axios reported.

Citing sensitive documents that it had acquired, Axios stated that two routes were up for discussion: building a single, super-fast mobile network that it could then rent access to national carriers, or wireless U.S.-based providers could establish their own 5G networks that would compete with each other.

On the data front, personal income and outlays are due out early this morning, followed by the Dallas Fed's Texas Manufacturing Outlook survey at 10:30 a.m. ET.

Overseas, Japan’s Nikkei 225 index dropped 2.5 points, while in Hong Kong, the Hang Seng Index demurred 0.6%.

Oil prices dipped 49 cents to $65.65 U.S. per barrel.

Gold prices slouched $10.29 to $1,341.80 U.S. an ounce.