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Bay Street Likely To See Mixed Opening

Canadian shares are likely to open on mixed on Monday. While the U.S. decision to drop plans to impose tariffs on Mexico is likely to support the market, falling gold prices may weigh on materials shares.

In economic news, data released this morning showed the seasonally adjusted annual rates of housing starts in Canada fell to 202,337 units in May 2019 from a downwardly revised 233,410 in April, missing market expectations of 205,000.

Meanwhile, Canadian municipalities issued a record CAD 9.3 billion worth of building permits in April 2019, up 14.7% from the previous month. Markets had expected an increase of just 1.3%. The increase in the value of permits was almost entirely due to a planned change in development costs in Metro Vancouver, the report showed.

Trade tensions have eased a bit after the U.S. administration dropped plans to impose tariffs on Mexican goods following the Mexican government agreeing to step up efforts to halt the flow of illegal migration into the U.S.

However, concerns about U.S.-China trade dispute remain.

On Friday, the Canadian benchmark S&P/TSX ended up 3.16 points, or 0.02%, at 16,230.96.

In company news, Heroux-Devtek Inc. (HRX.TO) today announced that it has concluded the acquisition of all the outstanding shares of Montreal-based Alta Precision Inc., a manufacturer of high-precision landing gear components. The transaction, valued at $23 million, was funded through the Corporation's credit facilities.

Asian markets ended higher on Monday as trade tensions eased a bit after the U.S. said it would drop plans for tariffs on Mexico. Data showing growth in China's exports in the month of May helped as well.

European markets were edging up marginally in thin holiday trades. Markets in Germany, Switzerland, Austria and most of Nordic countries are closed for a holiday today.

In commodities, crude oil futures for July were up $0.28, or 0.52%, at $54.27 a barrel.

Gold futures for August were declining $15.50, or 1.17%, at $1,330.60 an ounce.

Silver futures for July were down $0.306, or 2.04%, at $14.725 an ounce, while Copper futures for July were gaining $0.0110, or 0.41%, at $2.6385 per pound.

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