Plus   Neg

Bay Street Likely To Open On Negative Note

Canadian shares are likely to open lower Tuesday morning amid rising uncertainty about U.S.-China trade talks making any smooth progress, after U.S. blacklisted several Chinese entities for their role in China's alleged repression of Muslim minorities.

Meanwhile, Chinese Vice Premier Liu He is scheduled to meet U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin in Washington.

In economic news, a report from Canada Mortgage and Housing Corporation said the seasonally adjusted annual rates of housing starts in Canada fell 2.5% from a month earlier to 221,202 units in September 2019, still beating market expectations of 214,500.

Meanwhile, the value of building permits in Canada increased 6.1% from a year earlier to C$ 9.0 billion in August 2019, following an upwardly revised 3.2% gain in the previous month and above market forecasts of a 1% fall.

On Monday, the benchmark S&P/TSX Composite Index ended the session at 16,421.75, recording a loss of 27.60 points, or 0.17%.

Asian markets ended higher on Tuesday, reacting positively to White House economic adviser Larry Kudlow's comments that he is hopeful about trade talks with China. Kudlow said the delegates are starting with a "clean slate, reopening the door."

European stocks drifted lower as investors turned anxious ahead of the next round of high-level trade talks between the U.S. and China starting Thursday.

Traders were also digesting a mixed batch of economic data and comments from a source in British Prime Minister Boris Johnson's office suggesting that a Brexit deal was essentially impossible.

In commodities, crude oil futures for November were down $0.77, or 1.47%, at $51.98 a barrel.

Gold futures for December were rising $4.40, or 0.29%, at $1,508.80 an ounce.

Silver futures for December were up $0.050, or 0.29%, at $17.590 an ounce, while Copper futures for December were down marginally at $2.5760 per pound.

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