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Bay Street Headed For Weak Opening

Lower U.S. and Canadian stock futures and weakness in global markets amid mounting worries about U.S.-China trade conflict point to a gap down opening for the Canadian market on Monday.

Crude oil's sharp rise may help limit market's losses.

After U.S. President Donald Trump warned that China should reach deal as it ""Would be wise for them to act now" and that he loves collecting big tariffs, China's Foreign Ministry spokesman Geng Shuang reportedly promised that China would "never surrender" to external pressure.

According to reports, China has invited U.S. officials to Beijing to continue talks this week. Meanwhile, Trump's economic advisor Larry Kudlow said Trump would aim to meet with Xi Jinping at a G-20 meeting in June.

On Friday, the benchmark S&P/TSX Composite Index ended down 24.20 points, or 0.15%, at 16,297.55, after being down more than 180 points at one stage.

In company news, Premium Brands Holdings Corporation (PBH.TO) reported adjusted EPS of $0.52 per share for the first quarter of 2019, down from $064 per share in the first quarter of 2018. The company has declared a quarterly dividend of $0.525 per share.

Ensign Energy Services Inc. (ESI.TO) reported net loss of $22.3 million, or $0.14 per common share, for the quarter ended March 2019, compared to net loss of $26.7 million, or $0.17 per common share, for the three months ended March 2018.

The Green Organic Dutchman Holdings Ltd. (TGOD.TO) announced that its wholly owned subsidiary, HemPoland, has entered into an agreement with Mediakos UG to be the exclusive distributor of CannabiGold, its premium hemp CBD brand, for the German pharmacy market.

Asian markets drifted lower on Monday after trade talks between the United States and China ended without a resolution last week and U.S. President Donald Trump on Sunday defended his tariff policy, saying the U.S. is right where it wants to be with China.

European stocks are falling amid rising worries about U.S.-China trade tensions after talks between the two countries failed without an agreement last week, and on concerns over Brexit after expectations over a deal between Labour and the Conservatives faded.

In economic news from Europe, France is forecast to expand at a steady pace in the second quarter, according to a monthly survey from Bank of France.

Gross domestic product is expected to grow 0.3% in the second quarter, the same rate as registered in the first quarter.

The confidence index in the manufacturing sector dropped to 99 in April from 100 in March. In April, industrial production slowed down. However, business leaders expect output to pick up in May.

In services, the business sentiment indicator came in at 100 in April versus 101 in March. Business leaders forecast activity to grow in May. The business sentiment index in construction slid to 105 in April from 106 in March.

In commodities, crude oil futures for June are up $0.70, or 1.14%, at 62.36 a barrel.

Gold futures for June are down $3.00, or 0.23%, at $1,284.40 an ounce.

Silver futures for July are declining $0.145, or 0.98%, at $14.645 an ounce, while Copper futures for July are down $0.0425, or 1.52%, at $2.7320 per pound.

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