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Bay Street Likely To Open On Cautious Note

The Canadian stock market is likely to open on a cautious note Tuesday morning, reacting to news about U.S.-China tensions, the rapidly spreading coronavirus and fears of fresh lockdown measures, and earnings reports from top U.S. banks.

Weak commodity prices may also weigh on stocks, while mild optimism about economic recovery in upcoming quarters may help limit market's downside.

In its quarterly report, RSM Canada says the country's economic outlook is more optimistic than before, although the industry and trade are still in shock due to the impact of the coronavirus spread.

On Monday, the benchmark S&P/TSX Composite Index, which rose to 15,879.73, gaining nearly 160 points in the process, ended the session with a loss of 74.41 points or 0.47% at 15,639.41.

SNC-Lavalin (SNC.TO) has announced that its Atkins business in joint venture with Arup has been awarded a design consultancy contract by MTR Corporation Limited (MTRCL) for the Tung Chung Line Extension in Hong Kong. The project involves a 1.3km underground extension of the Tung Chung Line to a new terminus station in Tung Chung West.

Asian stocks ended mostly lower on Tuesday as global coronavirus cases topped 13 million and the World Health Organization warned the pandemic could get far worse if countries around the world do not follow basic healthcare precautions. Renewed U.S.-China tensions also dampened investor sentiment as the White House rejected nearly all Chinese maritime claims in the South China Sea.

European stocks are lower with simmering Sino-U.S. tensions and worries about the state of California shutting down denting investors' appetite for risk.

In commodities, West Texas Intermediate Crude oil futures for August are down $0.47 or 1.17% at $39.63 a barrel.

Gold futures for August are lower by $11.70 or 0.64% at $1,802.40 an ounce.

Silver futures for September are down $0.333 or 1.68% at $19.455 an ounce, while Copper futures for September are down $0.0165 or 0.56% at $2.9385 per pound.

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