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Bay Street Headed For Positive Start

The Canadian stock market is likely to open higher on Tuesday, tracking the uptick in crude oil prices and firm European stocks.

The U.S. President's threat that new tariffs may be imposed on Chinese goods may hurt, but fresh stimulus announced by the Chinese government and the latest agreement between the U.S. and Mexico is expected to help keep investor sentiment positive.

On Monday, the Canadian benchmark S&P/TSX Composite Index ended down 14.70 points, or 0.09%, at 16,216.26, after swinging between 16,201.61 and 16,262.16.

In company news, Canfor Corp. (CFP.TO) announced that it is curtailing operations at all of its British Columbia sawmills, except its WynnWood operations, due to poor lumber markets. The company said a majority of the millls will be curtailed for two weeks or the equivalent, with extended curtailments at select locations.

Asian markets ended mostly higher on Tuesday despite U.S. President Donald Trump's fresh threat that he will impose new tariffs on Chinese goods if his counterpart Xi Jinping does not attend the upcoming G20 meeting.

European stocks were edging higher with investors largely shrugging off Trump's threat to impose tariffs on China, and betting on hopes global central banks will step up stimulus to boost economic growth.

In economic news from eurozone, investor confidence eroded sharply in June as a renewed escalation in trade tensions between the US and China hurt sentiment in the single currency bloc, survey data from the behavioral research institute Sentix showed on Tuesday.

The investor confidence index for the euro area fell by 8 points to -3.3 from +5.3 in May. Economists had expected a score of +2.5.

In commodities, crude oil futures for July were gaining $0.50, or 0.94%, at $53.76 a barrel.

Gold futures for August were declining $5.50, or 0.41%, at $1,323.90 an ounce.

Silver futures for July were down marginally at $14.635 an ounce, while Copper futures were gaining $0.030, or 1.12%, at $2.6915 per pound.

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