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Bay Street Likely To Open On Weak Note

The Canadian market is likely to open on a negative note on Tuesday, weighed down by weak global cues amid worries about slowing growth and rising tensions between the U.S. and China.

It is feared that a trip by U.S. House Speaker Nancy Pelosi to Taiwan would raise tensions between the two economic superpowers. Chinese foreign ministry spokesman Zhao Lijian said that Pelosi's visit would lead to "very serious developments and consequences". The White House has warned China against turning her visit into a crisis.

On the Canadian economic front, Markit Economics will release the data on Canada's manufacturing activity for the month of July at 9:30 AM ET. The S&P Global Canada Manufacturing PMI fell to 54.6 in June of 2022 from 56.8 in the previous month. The reading pointed to the 24th straight month of expansion in factory activity but at the slowest pace since January of 2021.

Air Canada (AC.TO) reported a net loss of $386 million or $1.60 per diluted share for the second quarter compared to a net loss of $1.165 billion or $3.31 per diluted share in the second quarter of 2021.

Sprott Inc. (SII.TO) reported net income of $0.8 million ($0.03 per share) for the second quarter, down 93%, or $10.3 million ($0.41 per share) from the quarter ended June 30, 2021.

The Canadian market ended on a strong note on Friday, extending its winning streak to a third straight session, led by strong gains in energy, materials, healthcare and industrials sectors.

Fairly strong earnings updates, firm commodity prices, and preliminary data showing a stronger than expected growth of the Canadian economy in the second quarter aided sentiment.

The benchmark S&P/TSX Composite Index, which climbed to 19,733.95, ended with a gain of 236.21 points or 1.21% at 19,692.92, a near 7-week closing high. The index gained nearly 4.5% in the month. The market remained closed on Monday for Civic Day holiday.

Asian stocks fell on Tuesday as worrying manufacturing data from across the globe raised concerns over a potential recession. Chinese, Hong Kong and Taiwanese stocks led losses ahead of a possible trip by U.S. House Speaker Nancy Pelosi to Taipei as part of her Asian tour/

European stocks are broadly lower with investors weighing the risks of worsening relationship between the U.S. and China as they expect that a trip by Nancy Pelosi to Taiwan would raise tensions between the two economic superpowers.

Chinese foreign ministry spokesman Zhao Lijian said that Pelosi's visit would lead to "very serious developments and consequences". The White House has warned China against turning her visit into a crisis.

Additionally, the United States accused Russia of using Ukraine's biggest nuclear power plant as a "nuclear shield" by stationing troops there, preventing Ukrainian forces from returning fire and risking a terrible nuclear accident.

In commodities trading, West Texas Intermediate Crude oil futures are up $0.52 or 0.55% at $94.41 a barrel.

Gold futures are gaining $8.30 or 0.46% at $1,796.00 an ounce, while Silver futures are up $0.038 or 0.19% at $20.400 an ounce.

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