Source: The Canadian Press

The Toronto stock market could get a slight bump in early trading Monday from higher commodity prices.

But trading could be subdued with U.S. markets closed for Memorial Day.

A day before the Bank of Canada’s announcement on interest rates, the Canadian dollar was up 0.33 of a cent to 95.39 cents US with many analysts expecting the central bank to hike rates by a quarter point.

“If the bank does the widely expected, it would mark the first tightening move by a G8 central bank since the 2008 financial crisis,” observed BMO Capital Markets deputy chief economist Douglas Porter.

The bank has kept its key rate at 0.25% since April 2009.

Prior to that announcement, investors are looking to the latest update on Canadian economic growth. Statistics Canada is expected to report before the market open that first quarter growth came in at an annualized rate of 6%.

The week ends with the release of May employment data for both Canada and the U.S.

In electronic trading, the July crude contract on the New York Mercantile Exchange rose 42 cents to US$74.39.

Bullion prices moved slightly higher with the August gold contract on the Nymex ahead 60 cents to US$1,215.60 a barrel while copper for July was up one cent at US$3.12.

In Asia, Japan’s Nikkei 225 stock average inched up 0.1% amid news that industrial production in the world’s No. 2 economy rose for a second straight month in April, propelled by robust growth in China and the rest of Asia.

Separately, India’s economic growth accelerated to 8.6% in the January-March quarter, its best in two years as Asia’s third-largest economy returns to pre-crisis levels of expansion.

European bourses were mixed with Frankfurt’s DAX up 0.32% while the Paris CAC 40 was off 0.24%.

The London market was closed for the U.K. bank holiday.

The expected tepid showing on the TSX on the final day of May trading comes as investors survey what has been a decidedly negative month as investors remained focused on Europe’s debt crisis.

The market is off 5% from the 2010 highs that were registered on April 26 on worry about slowing economic growth in the eurozone and the future of the euro currency itself.

Analysts characterized the markets as volatile and saw investors holding back as doubts remain the European Union can contain a debt crisis that has sent the euro to four-year lows.

“They are still cautious at this point,” said Mark Tan, who helps manage about $15 billion of equities and bonds at UOB Asset Management in Singapore.

“Liquidity in the stock market is still pretty tight.”

Meanwhile, the French parliament was scheduled to go over a revised budget bill Monday ahead of its expected approval of France’s share of the US$1 trillion bailout for struggling member states.

In corporate news, Bombardier Inc. (TSX:BBD.B) has been awarded a $241-million contract to supply a monorail system for the Saudi capital city’s new financial district.