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Bay Street Seen Opening On Negative Note

Canadian shares are likely to open on a weak note Wednesday morning, weighed down by concerns over a surge in new coronavirus cases across the world. Lower crude oil prices may also hurt sentiment.

Notwithstanding the massive stimulus measures from governments and central banks and optimism about economic recovery, the overall mood in the market continues to remain cautious due to worries about a second wave of virus infections.

White House health advisor Dr. Anthony Fauci warned Tuesday that parts of the U.S. are beginning to see a "disturbing surge" of Covid-19 cases. Fauci told Congress that the next two weeks would be critical in trying to keep the virus under control.

The market could also be weighed down by trade concerns after reports said the U.S. is considering tariffs on over $3 billion of exports from the U.K., France, Spain and Germany.

Arizona, Texas and California reported daily records of infections Tuesday, raising fears that authorities could tighten measures in an effort to halt the spread.

On Tuesday, the benchmark S&P/TSX Composite Index ended up 47.85 points or 0.31% at 15,564.75, after scaling a high of 15,679.44 and a low of 15,527.24 intraday.

Asian markets ended mostly higher on Wednesday thanks to improved data from key economies and optimism central banks will come out with more stimulus measures.

European stocks slid sharply after a weak start, and despite a mild recovery, are still languishing deep down in negative territory. A sharp surge in the number of coronavirus cases across the world following relaxation of lockdown restrictions is weighing on investor sentiment.

In commodities, West Texas Intermediate Crude oil futures for August are down $0.87 or 2.16% at $39.50 a barrel.

Gold futures are rising $5.40 or 0.3% at $1,787.40 an ounce, while Silver futures are down $0.173 or 0.9% at $17.890 an ounce.

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