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Bay Street Set To Open On Firm Note

Canadian shares are likely to open sharply higher on Tuesday, tracking strong Asian and European markets, and surging crude oil and gold prices.

Meanwhile, the U.S. lawmakers continue to try to negotiate an agreement on a nearly $2 trillion fiscal stimulus bill.

On Monday, the benchmark S&P/TSX Composite Index ended down 623.32 points, or 5.26%, at 11,228.49, around 55 points off the day's low of 11,172.73.

Precision Drilling Corp. (PD.TO) said it is reducing its 2020 capital expenditure plan to $48 million, from prior plan of $95 million. Precision is also taking measures to enhance free cash flow by reducing salaries and headcount, and expects these measures will reduce annualized fixed costs by over 30%, including up to a $30 million reduction in G&A expense.

Suncor Energy Inc (SU.TO) on Monday cut its 2020 production outlook and suspended share repurchases for the year, citing the decline in crude oil prices and the economic impact of the coronavirus outbreak.

Asian markets rallied sharply on Tuesday, buoyed by the U.S. Federal Reserve's announcement that it would purchase an unlimited amount of Treasuries and mortgage-backed securities, a move that would help reduce currency and credit risks amid fears of a virus-induced global recession.

European markets are rallying sharply with investors reacting positively to the Federal Reserve's unlimited quantitative easing program and aggressive asset-buying from the Bank of Japan.

Investors also noted a report from Italy that said the increase in coronavirus in the country was smaller for the second day running, and a report from Germany's public health institute that said the upward trend in the number of novel virus cases was levelling off.

In commodities, West Texas Intermediate Crude oil futures for May are up $0.50, or 2.1%, at $23.86 a barrel.

Gold futures for April are gaining $87.40, or 5.4%, at $1,655.00 an ounce.

Silver futures for May are up $0.560, or 4.23%, at $13.821 an ounce, while Copper futures for May are rising $0.0840, or 4%, at $2.1845 per pound.

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