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Bay Street Likely To Open Higher

Canadian shares are likely to open on a positive note, tracking higher gold and oil prices. Expectations of a cut in U.S. interest rates sometime this year will continue to support the market.

However, concerns about trade and fears of another escalation in tensions after the U.S. threatened to impose fresh tariffs on Chinese goods may weigh down the market.

Data on Canada's trade balance for April is due at 8:30 AM ET. The Ivey Purchasing Managers' Index reading for May is due at 10 AM ET.

The market will also be reacting to data on U.S. trade deficit for April and the report on initial jobless claims for last week, both due at 8:30 AM ET.

On Wednesday, the Canadian benchmark S&P/TSX Composite Index ended up 46.42 points, or 0.29%, at 16,212.66. The index, which fell to 16,128.59 around mid morning, rose to 16,224.76 later on in the session.

In company news, MTY Food Group Inc. (MTY.TO) announced today that one of its wholly-owned subsidiaries has signed an agreement to acquire the assets of Yuzu Sushi, a fast-growing chain of sushi restaurants.

Asian markets ended mixed on Thursday after the U.S. and Mexico failed to reach a deal during their tariff talks on Wednesday. A downward revision in China's growth forecast by the IMF for this year and next weighed as well on stocks.

European stocks are modestly higher in cautious trade. The European Central Bank today left interest rates unchanged, and said it expects to hold rates unchanged through the first half of 2020.

In commodities, crude oil futures for July are gaining $0.50, or 0.97%, at $52.18 a barrel.

Gold futures for August are up $7.80, or 0.58%, at $1,341.40 an ounce.

Silver futures for July are rising $0.160, or 1.1%, at $14.951 an ounce, while Copper futures for July are up $0.0175, or 0.67%, at $2.6405 per pound.

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