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Flat To Negative Start Seen For Canadian Shares

Canadian shares look headed for a flat to negative start on Tuesday, tracking weak cues from Europe. However, materials stocks may edge higher thanks to steady bullion prices.

Worries about trade disputes and caution ahead of US midterm elections may render the price movements a bit sluggish early on in the session.

At 8:30 AM ET, data on Canada building permits for September will be out.

On Monday, the benchmark S&P/TSX Composite Index ended up 98.42 points, or 0.65%, at 15,217.70, after scaling a low of 15,136.81 and a high of 15,217.70.

In economic news, Bausch Health Companies Inc. (BHC.TO) reported net loss of $350 million for the quarter ended September 2018.

Thomson Reuters (TRI.TO) reported adjusted EPS of $0.11 for the third quarter of this year, as compared to $0.27 in the year ago quarter.

Wajax Corporation (WJX.T) reported third quarter revenue of $69.5 million, up 23.3% over year-ago quarter.

Asian markets ended on a somewhat mixed note. European markets were drifting lower, weighed down by weak eurozone economic data.

Survey data from IHS Markit showed that Eurozone's private sector expanded at the weakest pace in over two years in October as both manufacturing and services recorded slower rates of growth.

The composite Purchasing Managers' Index, or PMI, fell to 53.1 from September's 54.1. The reading was the lowest since September 2016. The flash reading for the composite PMI was 52.7.

Separate data showed that Germany's services sector expanded more-than-expected at in October, albeit at a slowest pace in three months.

The services Purchasing Managers Index, or PMI, fell to 54.7 in October from September's eight-month high of 55.9. The latest reading was the lowest since July, but was above the flash estimate of 53.6.

Meanwhile, European shares fell as investors largely refrain from making significant moves ahead of some key political and economic events, like the midterm elections in the U.S., and the Federal Reserve's monetary policy review.

In commodities, crude oil futures for December were down $0.19, or 0.3%, at $62.91 a barrel.

Gold futures for December were rising $6.90, or 0.56%, at $1,236.70 an ounce.

Silver futures for December were up $0.038, or 0.26%, at $14.685 an ounce.

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