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Bay Street Likely To Open On Positive Note

Higher Canadian and U.S. stock futures and positive trend in Europe point to a higher opening in the Canadian stock market on Tuesday.

Fresh optimism about U.S.-China trade deal following U.S. President Donald Trump's somewhat conciliatory tone on trade talks with China is likely to trigger some buying in the market.

Trump said a likely meeting with the Chinese President Xi Jinping at the meeting of G20 leaders on June 28 and 29, "will be probably a very fruitful meeting."

Trump also predicted that the outcome of trade talks would come "in about three or four weeks."

A rebound in crude oil prices is likely to help as well.

On Monday, the benchmark S&P/TSX Composite Index, which plunged to a low of 16,111.26 intraday, losing nearly 190 points in the process, ended the session with a loss of 104.14 points, or 0.64%, at 16,193.41, finishing down for a third successive day.

In company news, TransAlta Corporation (TA.TO) reported net loss of $0.23 per common share for the quarter ended March 2019, compared to net earnings of $0.23 in the corresponding quarter last year.

CannTrust Holdings Inc. (TRST.TO) reported net income of $12.8 million for the quarter ended March 2019, after posting a net loss of $25.52 million in the quarter ended December 2018.

Asian markets ended mostly lower on Tuesday amid worries over an escalation in U.S.-China trade tensions.

After China announced it would increase tariffs on $60 billion worth of U.S. goods from June 1st, the office of U.S. Trade representative is reportedly taking steps to raise duties of up to 25% on a further $300 billion worth of imports from China.

European stocks are recovering after falling sharply in the previous session. U.S. President Donald Trump's more conciliatory tone on trade talks with China helped spur optimism about U.S. and China reaching a deal.

In economic releases, Germany's economic sentiment weakened unexpectedly in May, survey data from the ZEW-Leibniz Centre for European Economic Research showed.

The economic sentiment index fell to -2.1 in May from +3.1 in April. The reading was expected to rise to 5.0.

Euro zone industrial production fell in March for a second straight month, in line with market expectations.

The U.K. jobless rate declined in the first quarter to the lowest since 1974, signaling continuing firming of the labor market.

In commodities, crude oil futures for June are rising $0.82, or 1.34%, at $61.86 a barrel.

Gold futures for July are down $2.50, or 0.19%, at $1,299.30 an ounce.

Silver futures for July are rising $0.028, or 0.19%, at $14.805 an ounce, while Copper futures for July are up $0.0035, or 0.13%, at $2.7225 per pound.

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