Bay Street Likely To Open On Mixed Note

(RTTNews) - Canadian shares may be weighed down on Tuesday by U.S. President Donald Trump's announcement on Monday that he is likely to announce pharmaceutical tariffs soon. The Federal Reserve's monetary policy announcement, due on Wednesday, is also in focus.

However, higher crude oil and metal prices could trigger some buying in energy and materials space and help limit market's downside if any. Investors will also be reacting to a slew of corporate earnings announcements.

Centerra Gold Inc. (CG.TO) announced that earnings decreased in the first quarter compared with the previous year. Further, the Board has approved a share buyback of up to $75 million. The company said that its first quarter earnings declined to $30.5 million from $66.4 million last year.

Parkland Fuel (PKL.TO) reported earnings per share of $0.37 for the latest quarter, up from $0.25 a year ago, but less than an expected EPS of $0.58.

Ero Copper (ERO.TO) reported earnings per share of $0.35 for the latest quarter, up slightly from $0.32 a year ago.

Suncor Energy, Intact Financial Inc., George Weston, Cenovus Energy, Colliers International Group, MEG Energy and Iamgold Corporation are scheduled to announce their quarterly earnings today.

On the economic front, Canada's trade balance for the month of March is due at 8:30 AM ET.

The Ivey PMI reading for the month of April is due at 9 AM ET. The Ivey Purchasing Managers Index in Canada eased to 51.3 in March from a seven-month high of 55.3 in February.

After recovering from an early slump, Canadian stocks moved back to the downside in the latter part of the trading session on Monday.

The benchmark S&P/TSX Composite Index bounced off its early lows to spend some of the day in positive territory but closed down 77.99 points or 0.3 percent at 24,953.52.

The early weakness on Bay Street may have reflected profit taking after the S&P/TSX Composite Index ended last Friday's trading at its best closing level in a month.

Renewed trade concerns also weighed on stocks after President Donald Trump announced plans to impose a 100 percent tariff on movies produced in foreign countries.

Trump also told reporters on Sunday that he has no plans to talk to his Chinese counterpart Xi Jinping this week, offsetting recent optimism about a potential U.S.-China trade deal.

Asian stocks turned in a mixed performance in thin holiday trading on Tuesday as investors watched the latest developments in trade negotiations and awaited further policy action from Beijing to boost consumption.

European stocks are exhibiting weakness on Tuesday, weighed down by political uncertainty in Germany, and lingering concerns about trade tensions.

In commodities trading, West Texas Intermediate Crude oil futures are up $1.27 or 2.2% at $58.40 a barrel.

Gold futures are gaining $60.50 or 1.84% at $3,382.80 an ounce, while Silver futures are up $0.821 or 2.53% at $33.295 an ounce.