Bay Street Likely To Open On Positive Note

(RTTNews) - Canadian shares are likely to open higher on Tuesday on steady crude oil and bullion prices. Political uncertainty following the resignation of Canadian Prime Minister Justin Trudeau, and tariff hike threats by U.S. President-elect Donald Trump may limit market's upside.

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

Canada posted a trade deficit of about C$ 0.92 billion in October 2024, down from a deficit of C$ 1.26 billion in the previous month. Exports increased by 1.1% to C$ 64.22 billion, while imports to Canada rose by 0.5% to C$ 65.14 billion in October.

The Ivey Business School will release the PMI reading for the month of December at 10 AM ET. The Ivey Purchasing Managers Index in Canada rose to 52.3 in November 2024, up from 52 in October.

In corporate news, GFL Environmental Inc. (GFL.TO) announced that it will sell its environmental services division to Apollo Global Management and BC Partners in a deal valued at C$ 8 billion.

The Canadian market ended weak on Monday, paring early gains. The benchmark S&P/TSX Composite Index pulled back off its early highs and into negative territory, closing down 73.75 points or 0.3% at 24,999.79.

The early strength on the day partly reflected a positive reaction to a Washington Post report suggesting U.S. President-elect Donald Trump may scale back his tariff plans. Buying interest waned over the course of the session, however, as Trump later dismissed the report as "fake news."

The downturn on Bay Street also came after Canadian Prime Minister Justin Trudeau announced his resignation.

Asian stocks closed mixed on Tuesday as U.S.-China tensions and jitters around the yuan offset growing optimism around chip stocks.

European stocks are broadly higher in cautious trade with investors digesting a slew of regional economic data, including a report on Eurozone inflation.

Preliminary data from Eurostat showed that eurozone inflation rose to the highest level in five months in December largely reflecting higher services cost. The harmonized index of consumer prices climbed 2.4% from a year ago, following a 2.2% gain in November. The pace of growth matched economists' expectations.

Excluding prices of energy, food, alcohol and tobacco, core inflation held steady at 2.7% in December and also came in line with forecast. On a monthly basis, the HICP moved up 0.4% in December, data showed.

In commodities, West Texas Intermediate Crude oil futures for February are up $0.47 or 0.65% at $74.03 a barrel.

Gold futures are up $15.10 or 0.57% at $2,662.50 an ounce, while Silver futures are gaining $0.287 or 0.94% at $30.870 an ounce.