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Cautious Opening Seen For Bay Street

Bay Street is likely to open on a cautious note on Tuesday with traders tracking news about Brexit vote and quarterly earnings reports from U.S. and Canada. Higher crude oil prices may trigger buying in the energy space.

Reports about the Chinese government's steps to revive growth are likely to aid sentiment.

On Monday, the benchmark S&P/TSX Composite Index ended up 36.35 points, or 0.24%, at 14,975.53, after scaling a low of 14,880.98 and a high of 14,997.86 intraday.

In company news, Magna International Inc (MG.TO) announced that its 2019 revenue will be impacted by the sale of its fluid pressure and controls business and stronger dollar.

Crescent Point Energy (CPG.TO) has slashed its 2019 capital budget by 30%, citing recent decline in oil prices as the reason for the lower guidance.

Asian markets ended mostly higher on Tuesday with investors reacting positively to Citigroup's results and news about China's measures to counter slowing growth. The Chinese finance ministry said that it would implement larger tax and fee cuts to help reduce burdens for small firms and manufacturers and the central bank said that it would stick with its prudent monetary policy to support growth.

After opening on a firm note, most of the markets in Europe have turned easy today with traders looking ahead to the vote on Theresa May's Brexit deal.

It is widely expected that May will lose the vote, with some analysts predicting one of the biggest defeats for any British government.

In economic news from Europe, a report from Eurostat showed eurozone's merchandise trade surplus decreased strongly in November, as the growth in imports outpaced that of exports.

The trade surplus fell to EUR 19 billion from EUR 23.4 billion in the same month last year, the report showed. Exports increased 1.9 percent year-on-year and imports rose 4.7 percent. Trade within the euro area grew 1.5 percent year-on-year.

On the economic front from the U.S., data on producer prices in the U.S. for the month of December, is due at 8:30 AM ET.

The Empire State manufacturing survey report is also due at 8:30 AM ET.

Meanwhile, in commodities, crude oil futures for February are up $0.79, or 1.56%, at 51.32 a barrel.

Gold futures for February are down $2.85, or 0.22%, at $1,288.45 an ounce.

Silver futures for March are down $0.088, or 0.56%, at $15.598 an ounce, while Copper futures for March are up marginally at $2.637 per pound.

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