TSX Set For Positive Open On Trade Talk Progress

Canadian stocks look set to open higher on Tuesday after top Chinese and U.S. negotiators spoke on the phone and agreed to “push forward” their Phase 1 trade deal reached between the two countries in January.

Washington said the parties “addressed steps that China has taken to effectuate structural changes called for by the agreement”.

Beijing said the two sides had a “constructive dialogue” on creating conditions and atmosphere to continue to push forward the implementation of the Phase one agreement.

There is more good news on the vaccine front as biotechnology company Moderna, Inc. said it has concluded advanced exploratory talks to provide 80 million doses of its experimental coronavirus shot to the European Union.

On the economic front, a favorable revision to second-quarter German GDP data and another increase in the Ifo Business Climate index helped ease investor concerns surrounding economic recovery.

Investors now await U.S. reports on home prices, consumer confidence and new home sales as well as a Thursday speech from Federal Reserve chairman Jerome Powell for further cues on U.S. monetary policy and the economic outlook.

Stocks rose broadly across Asia and Europe and U.S. stock futures pointed to more gains on Wall Street despite rising coronavirus cases in Asia and Europe.

The World Health Organization (WHO) said that the Covid-19 pandemic is still expanding, but the rise in cases and deaths has slowed globally, except for Southeast Asia and the eastern Mediterranean regions.

Researchers in Hong Kong reported what appears to be the first confirmed case of Covid-19 reinfection. Top U.S. virus expert Anthony Fauci has warned against rushing out a Covid-19 vaccine before it has been fully tested.

Oil prices traded mixed in European trade ahead of the API inventory data while gold and the dollar slipped.

Canadian stocks showed a notable move to the upside on Monday, offsetting the pullback seen last Friday. The benchmark S&P/TSX Composite Index ended up 108.79 points, or 0.7 percent, at 16,626.63, with energy stocks leading the surge.

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