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Bay Street Set To Open On Upbeat Note

Canadian shares look headed for buoyant start on Monday, with investors reacting to news about the U.S. and China agreeing to a 90-day truce on their escalating trade war. Higher crude oil and gold prices are expected to further boost investor sentiment.

The U.S. and China agreed on Sunday to refrain from increasing tariffs. Accordingly, the U.S. will not raise tariffs on Chinese goods to 25%, from the existing 10%. China, for its part, has agreed to buy more agricultural, energy, industrial and other products from the U.S. to narrow its trade gap with the U.S.

At 9:30 AM ET, a report on manufacturing activity in Canada in the month of November will be out.

On Friday, the benchmark S&P/TSX Composite Index ended up 3.78 points, or 0.02%, at 15,197.82. The index scaled a low of 15,125.42 and a high of 15,214.25 in the session.

In company news, Canopy Growth Corporation (WEED.TO) announced today that it has entered into two agreements with 48North Cannabis Corp. (TSXV: NRTH) a strategic investment financing and partnership and a supply agreement. Under the Supply Agreement, 48North will supply Canopy Growth with dried cannabis grown at 48North's wholly-owned facility, DelShen Therapeutics Corp.

Equitable Group Inc. (EQB.TO) announced it has reached an agreement to acquire Bennington Financial Services Corp, a profitable and growing privately owned company serving the brokered equipment leasing market in Canada.

Canadian Pacific (CP.TO) announced that it has reached a tentative, four-year agreement with Unifor.

Markets in Asia ended on a high note and European markets were surging higher as well, as trade tension eased and worries about global economic growth subsided a bit after U.S. President Donald Trump and Chinese President Xi Jinping agreed to a 90-day truce on their escalating trade war.

Investors now look ahead to the debate on the Brexit deal before a final vote in Parliament on December 11.

In economic releases from Eurozone, a report from IHS markit showed eurozone's manufacturing growth slowed less-than-expected in November, amid marginal growth in output and weak business confidence. The manufacturing purchasing managers' index fell to 51.8, the lowest since August 2016, from 52 in October. The flash reading was 51.5.

Meanwhile, U.K. manufacturing growth recovered from a 27-month low in November on the back of a rise in domestic new orders and stock-building, a survey showed. IHS Markit's Purchasing Managers Index for the industry rose to 53.1 from 51.1 in October.

On U.S. economic data front, a report on construction spending for the month of October, the ISM Manufacturing survey report for November and manufacturing prices for November are due at 10 AM ET.

Markets will also react to speeches from Federal Reserve Governor Randal Quaries and Fed New York President John Williams.

In commodities, crude oil futures for January were rising $2.02, or nearly 4%, at $52.95 a barrel.

Natural gas futures for January were declining by $0.271, or 5.90%, at $4.342 per million btu.

Gold futures for February were up $8.50, or 0.7%, at $1,234.50 an ounce.

Silver futures for March were rising $0.273, or 1.9%, at $14.490 an ounce, while Copper futures for March were up $0.0.47, or 1.7%, at $2.834 per pound.

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