OTTAWA (dpa-AFX) - Canadian shares are likely to open higher Monday morning, tracking positive cues from Asian and European markets, where stocks exhibited strength amid relief over U.S. President Donald Trump's somewhat milder response to China's move on Hong Kong.
Although the Trump's administration is now set to revoke the special treatment for Hong Kong in order to penalise China's decision to impose national security legislation in Hong Kong, the fact that Trump has not threatened higher tariffs on China has helped ease concerns about U.S.-China tensions a bit.
The Bank of Canada is scheduled to announce its interest rate decision on Wednesday. The bank is widely expected to hold rate at 0.25%. Investors will be awaiting the accompanying statement from the bank for its views on the outlook for the economy.
Later in the week, data on international merchandise figures for Canada and the jobs data for the country for the month of May, will be out from Statistics Canada.
On Friday, the stayed weak right through the session on weak economic data and an escalation in U.S.-China tensions. The benchmark S&P/TSX Composite Index ended down 69.90 points, or 0.46%, at 15,192.83, about 100 points off the day's low of 15,092.89. However, the index gained 1.86% in the week.
Asian markets ended mostly higher on Monday, with investors heaving a sigh of relief after U.S. President Donald Trump stopped short of threatening tariffs on China. Data showing an expansion in China's factory activity in the month of May helped as well.
European markets are higher in thin holiday trade, relieved somewhat after Trump refraining from threatening tariffs on China. Encouraging factory data from China is contributing as well to the positive mood in European markets.
Among the major markets in Europe, Germany and Switzerland are closed today for Whit Monday holiday.
In commodities, West Texas Intermediate Crude oil futures for July are down $0.06, or 0.17%, at $35.43 a barrel.
Gold futures for August are down $5.90, or 0.31%, at $1,745.80 an ounce.
Silver futures for July are rising $0.151, or 0.82%, at $18.650 an ounce, while Copper futures for July are up $0.0125, or 0.52%, at $2.4380 per pound.
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