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Canadian Shares Likely To See Mixed Start

Canadian shares are likely to see a mixed opening on Monday, with investors reacting to results from major U.S. banks Goldman Sachs and Citigroup Inc. While optimism about U.S.-China trade deal is likely to support the market, lower commodity prices could hurt stocks.

On Friday, the benchmark S&P/TSX Composite Index ended up 81.06 points, or 0.49%, at 16,480.53, slightly off the day's high of 16,487.14.

In company news, Lundin Mining Corp. (LUN.TO) agreed to acquire 100% ownership stake in Mineração Maracá Indústria e Comércio S/A, which owns the Chapada copper-gold mine located in Brazil from Yamana Gold Inc. (YRI.TO) for cash consideration of $800 million, subject to customary adjustments.

In addition, Yamana will retain a 2.0% net smelter return royalty on future gold production from the Suruca gold deposit and receive contingent consideration of up to US$125 million over five years, subject to certain gold price thresholds being met. Yamana will also receive contingent consideration of US$100 million on potential construction of a pyrite roaster.

Aphria Inc. (APHA.TO) reported net loss of $108.2 million or $0.43 per share for the quarter ended February 28, 2019, compared to net income of $12.9 million or $0.08 per share for the same period last year. Excluding non-cash impairment charges, adjusted net loss was $50.2 million, or $0.20 per share in the third quarter.

Asian markets pared early gains and ended mixed on Monday, as investors looked for further signs of a pick-up in global growth and progress in U.S.-China trade talks.

Optimism prevailed on the trade front after U.S. Treasury Secretary Steven Mnuchin said on Saturday a U.S.-China trade agreement would go "way beyond" previous efforts to open China's markets to U.S. companies.

European stocks are turning in a mixed performance in cautious trade. According to reports, the European Union is considering hitting U.S. goods with retaliatory tariffs to the tune of 10.2 billion euros, escalating a tariff war over disputed aviation subsidies.

In the U.S., Goldman Sachs reported a drop in first quarter net profit this morning. The bank said its earnings totaled $2.18 billion, or $5.71 per share, as against $2.74 billion, or $6.95 per share in the same quarter last year.

Citigroup Inc's earnings in the first quarter came in at $4.71 billion, or $1.87 per share. In the year-ago quarter, the bank posted net earnings of $4.62 billion, or $1.68 per share.

In commodities, crude oil futures for May are down $0.72, or 1.13%, at $63.17 a barrel.

Gold futures for June are declining $4.00, or 0.31%. at $1,291.20 an ounce.

Silver futures for May are down $0.078, or 0.52%, at $14.885 an ounce, while Copper futures for May are down $0.0175, or 0.59%, at 2.9285 per pound.

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