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Bay Street Seen Opening Higher

Higher futures, positive global cues and solid economic data point to a firm start for Canadian stocks on Tuesday.

Rising optimism about coronavirus vaccine and firm bullion prices are also expected to support the market.

Data released by Statistics Canada a little while ago shows Canada's GDP expanded 8.9% in the third quarter of this year. Annualized GDP growth in Canada increased to 40.5% in the third quarter of 2020 from -38.1% in the second quarter of 2020.

The Canadian economy grew 0.8% over a month earlier in September, following a downwardly revised 0.9% expansion in the previous month.

The PMI reading of Canada's manufacturing activity for the month of November is due out at 9.30 AM ET.

Pharmaceutical giant Pfizer Inc. and German biotech firm BioNTech SE have submitted a formal Application for Conditional Marketing Authorization or CMA for their mRNA -based COVID-19 vaccine candidate, BNT162b2, to the European Medicines Agency or EMA. The companies hope that a CMA could potentially enable the use of BNT162b2 in Europe before the end of 2020.

The Canadian market ended sharply lower on Monday, due largely to profit taking after seven successive days of gains. Uncertainty about the pace of economic recovery weighed as well on stocks.

The benchmark S&P/TSX Composite Index ended down 206.31 points or 1.19% at 17,190.25, after plunging to a low of 17,124.86.

BMO Financial Group (BMO.TO) reported net income of $1,584 million or $2.37 per share for the fourth quarter of 2020. Adjusted net income for the quarter was $2.41 per share in the latest quarter, compared with $2.43 in the prior year.

Bank of Nova Scotia (BNS.TO) has announced a dividend of C$0.90 per share on the outstanding common shares of the Bank, payable January 27, 2021, to shareholders of record at the close of business on January 5, 2021.

Asian markets ended on a firm note on Tuesday, buoyed by upbeat Chinese manufacturing data and optimism over a Covid-19 vaccine becoming available soon.

European stocks are notably higher with investors picking up stocks thanks to strong Chinese economic data and on hopes that coronavirus vaccines will arrive soon.

In commodities, West Texas Intermediate Crude oil futures are down $0.25 or 0.55% at $45.09 a barrel.

Gold futures are rising $31.00 or 1.74% at $1,811.90 an ounce, while Silver futures are gaining $0.900 or about 4% at $23.493 an ounce.

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