(fxcue news) - Higher crude oil and bullion prices point to a positive start for the Canadian market Monday morning, but escalating Middle East tensions could hurt sentiment and limit market's upside. With a slew of crucial data, including Canada's unemployment report and U.S. consumer price inflation report, due later in the week, the mood is likely to remain cautious. According to reports, Israeli defense forces intensified air strikes targeting Gaza and the Lebanese capital of Beirut simultaneously on the first anniversary of Hamas' cross-border attack in Israel, which triggered the Middle East war. Dozens were killed in air strikes on a mosque and a now defunct school, which were converted as refugee relief shelters Sunday, according to Gaza's Hamas-run health ministry. The Israeli military says Hamas militants were hiding there. Chevron Canada, an indirect subsidiary of Chevron (CVX), said the company and a related entity have entered into a definitive agreement to sell their 20 percent non-operated interest in the Athabasca Oil Sands Project, 70% operated interest in the Duvernay shale, and related interests, all located in Alberta, Canada, to Canadian Natural Resources Limited, in a $6.5 billion all-cash transaction. The Canadian market posted new record intraday and closing highs on Friday as technology and energy stocks rallied on sustained buying support. Upbeat jobs data from the U.S., and a strong reading of Canada's Ivey Purchasing Managers Index helped underpin sentiment. The benchmark S&P/TSX Composite Index climbed to a new high of 24,179.28 and settled at 24,162.83, gaining 194.33 points or 0.81%. The index gained about 0.45% in the week. Asian stocks rallied on Monday and the dollar hit a fresh seven-week peak on the yen after robust U.S. jobs data signaled economic resilience but prompted trades to pare bets on aggressive Federal Reserve interest-rate cuts. After Friday's upbeat jobs data, traders now expect only a quarter-point cut in interest rates at the Federal Reserve's next policy announcement on Nov. 7, with a small chance that the policy rate stays unchanged. European stocks are finding modest support. Among the major markets, the U.K. and Germany are up in positive territory, while France is trading weak. In commodities, West Texas International Crude oil futures are up $1.42 or nearly 1.91 percent at 75.80 a barrel. Gold futures are gaining $8.80 or 0.33% at $2,676.70 an ounce.