OTTAWA (dpa-AFX) - Canadian shares may open on a positive note Monday morning following the U.S. and European Union agreeing on a trade deal.
U.S. President Donald Trump announced on Sunday that and EU have 'reached a deal' as per which America will impose a 15% tariff on products - including automobiles and semiconductors - coming into the country from EU. However, steel and aluminum will remain subject to a 50% tariff, but only on volumes exceeding agreed-upon quotas.
'We have reached a deal. It's a good deal for everybody,' Trump said. EU chief Ursula von der Leyel also reportedly hailed a 'good deal' with America.
In an interaction with media in Scotland, Trump announced that the EU had pledged additional investments of $600 billion in the US, alongside energy purchases amounting to $750 billion.
However, several top officials, including a senior European lawmaker, have criticised the draft trade agreement between the US and EU, warning that the deal could undermine the bloc's economic stability and job security.
The lawmaker described the proposed framework as 'unsatisfactory' and 'significantly imbalanced.'
The Bank of Canada's interest rate decision is due on Wednesday (July 30). The central bank is widely expected to hold its policy rate steady at 2.75% for a third consecutive decision.
Prime Mining Corp. (PRYM.TO) announced that it has entered into a definitive agreement under which Torex Gold Resources Inc. (TXG.TO) will acquire all issued and outstanding common shares of Prime Mining's Los Reyes gold-silver project in Mexico through a plan of arrangement. The transaction is anticipated to close in the second half of 2025, with Prime Mining shares to be delisted from the TSX shortly thereafter.
The Canadian market scaled a new high on Friday as traders expressed optimism in the continuing high-level U.S.-Canada trade negotiations.
The benchmark S&P/TSX Composite Index hit an intra-day high of 27,516.03 before settling at 27,494.35, up by 122.09 points or 0.45%.
Asian stocks closed broadly higher on Monday, although Japanese markets fell sharply due to profit taking after last week's rally.
Underlying sentiment remained supported somewhat as the EU and the U.S. struck a last-minute trade agreement and reports suggested the U.S. and China are likely to extend their tariff truce for another 90 days.
The major European markets have pared early gains with investors shifting their focus to upcoming earnings and economic data. News about the U.S. - EU trade deal helped lift sentiment early on in the session. However, the mood turned a bit cautious after some top officials in Europe termed the deal as 'unsatisfactory' and 'significantly imbalanced.'
In commodities trading, West Texas Intermediate Crude oil futures are up $0.63 or 0.96% at $65.79 a barrel.
Gold futures are up $1.30 or 0.04% at $3,336.90 an ounce, while Silver futures are down $0.110 or 0.29% at $38.255 an ounce.
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