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Bay Street Seen Opening On Cautious Note

Canadian shares are likely to open on a cautious note Tuesday morning with investors looking ahead to the signing of the U.S.-China phase one trade deal on Wednesday, and reacting to mixed results from top U.S. banks.

While weak gold prices may weigh on materials shares, a rebound in crude oil prices might trigger some buying in the energy space and limit market's downside.

In earnings reports from U.S., Citigroup said its profit rose to $4.98 billion, or $2.15 per share in the fourth quarter, up from $4.31 billion, or $1.64 per share in the last year's fourth quarter.

Wells Fargo reported fourth quarter profit of $2.55 billion, or $0.60 per share, down from $5.71 billion, or $1.21 per share in the previous year's fourth quarter.

On Monday, the S&P/TSX Composite Index, which hit a new high at 17,301.76, ended the session with a gain of 58.93 points, or 0.34%, at 17,293.42, a new closing high.

In company news, CGI Inc. (GIB.A.TO) and BNP Paribas Cardif have signed a new agreement for the delivery of services to support the insurer's compliance with the International Financial Reporting Standard (IFRS) 17. CGI will provide business consulting and system integration services for a 21-month period to help BNP Paribas Cardif comply with IFRS 17 before its January 1, 2022 effective date.

Aphria Inc. (APHA.TO) reported net revenue of $120.6 million in the second quarter, an increase of 457% from prior year quarter and decrease of 4% from prior quarter.

Wajax Corporation (WJX.TO) today announced that it has acquired all of the issued and outstanding shares of Calgary, Alberta-based NorthPoint Technical Services ULC, from an affiliate of Denver, Colorado-based Lion Equity Partners for an aggregate purchase price of $18 million.

Asian stocks ended broadly higher on Tuesday, although Chinese and Hong Kong markets fell ahead of the signing of a so-called phase one trade deal between the United States and China on Wednesday.

European shares are flat with investors largely looking to take some profits after recent uptrend in the markets.

The phase one U.S.-China trade deal is due to be signed at the White House on Wednesday.

According to reports, China has pledged to buy nearly an additional $80 billion of U.S. manufactured goods over the next two years.

In commodities, West Texas Intermediate Crude oil futures are rising $0.52, or 0.9%, at $58.60 a barrel.

Gold futures are declining $6.80, or 0.47%, at $1,543.80 an ounce.

Silver futures are down $0.226, or 1.26%, at $17.770 an ounce, while Copper futures are rising $0.0045, or 0.16%, at $2.8655 per pound.

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