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Stocks May Show A Lack Of Direction In Early Trading - Canadian Commentary

Canadian stocks may show a lack of direction in early trading on Monday following the lackluster performance seen in the previous session.

Lingering concerns about a global trade war may weigh on the markets, as President Donald Trump plans to implement tariffs on steel and aluminum imports.

In a post on Twitter, Trump indicated that the tariffs on steel and aluminum would only be removed if the U.S. negotiates a "new & fair" NAFTA agreement.

"We have large trade deficits with Mexico and Canada. NAFTA, which is under renegotiation right now, has been a bad deal for U.S.A. Massive relocation of companies & jobs. Tariffs on Steel and Aluminum will only come off if new & fair NAFTA agreement is signed," Trump tweeted.

He added, "Also, Canada must treat our farmers much better. Highly restrictive. Mexico must do much more on stopping drugs from pouring into the U.S. They have not done what needs to be done. Millions of people addicted and dying."

Trading activity may be somewhat subdued, however, as traders look ahead to the U.S. Labor Department's monthly employment report due to be released on Friday.

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