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Bay Street May Open On Weak Note

Canadian shares look headed for a lower opening Monday morning, tracking weakness in European markets and lower crude oil prices.

Worries over rising coronavirus cases may also weigh on sentiment. Higher bullion prices may help limit market's downside.

The Canadian stock market ended on a firm note on Friday, led by gains in information technology, industrials and consumer staples sections.

Upbeat earnings updates and a report suggesting Canada's retail sales likely surged higher in June helped keep investor sentiment positive. The benchmark S&P/TSX Composite Index ended up by 90.91 points or 0.45% at 20,188.43, after climbing to a high of 20,203.57. The index gained 1.02% in the week.

Pembina Pipeline Corp. (PBL.TO) announced Monday that it has terminated the arrangement agreement with Inter Pipeline Ltd. (IPL.TO) providing for the proposed acquisition by Pembina of Inter Pipeline, in accordance with its terms. Following this, Inter Pipeline has agreed to pay Pembina the C$350 million termination fee provided for in the agreement.

Asian stocks ended mostly lower on Monday as Beijing's widening technology sector crackdown overshadowed investor optimism over economic and earnings growth. Investors also turned their focus to the U.S. Federal Open Market Committee meeting this week for clues on the timing of stimulus tapering.

European stocks are down in negative territory Monday afternoon despite coming off early lows. Weak data on German business confidence and rising coronavirus infections weigh on sentiment.

In commodities, West Texas Intermediate Crude oil futures for September are down $0.41 or 0.56% at $71.66 a barrel.

Gold futures are up $6.30 or 0.35% at $1,808.10 an ounce, while Silver futures are gaining $0.237 or 0.94% at $25.470 an ounce.

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