Bay Street Headed For Positive Start

(RTTNews) - Canadian shares look headed for a firm start Monday morning, reacting to U.S. President Donald Trump's decision to delay the 50% tariffs on European Union goods till July 9th.

With the U.S. market closed today for Memorial Day, and earnings updates from Canadian banks due this week, the mood may remain a bit cautious at times.

The U.S. President's move comes after a call from European Commission President Ursula von der Leyen.

"The EU and US share the world's most consequential and close trade relationship. Europe is ready to advance talks swiftly and decisively. To reach a good deal, we would need the time until July 9," Von der Leyen wrote on X.

Bank of Nova Scotia, Bank of Montreal, National Bank Of Canada, Royal Bank of Canada, Canadian Imperial Bank of Commerce and Laurentian Bank of Canada are all slated to announce their quarterly earnings this week.

On the economic front, preliminary data on Canadian manufacturing sales for the month of April is due at 8:30 AM ET.

Canadian first-quarter GDP data is due on Friday (May 30).

On Friday, Candian stocks moved to the downside early in the trading day but rebounded over the course of the session. The benchmark S&P/TSX Composite Index climbed well off its early lows before ending the day up 25.94 points or 0.1% at 25,879.95.

Renewed trade concerns weighed on the market early in the session after U.S. President Donald Trump threatened to impose 50% tariffs on imports from the European Union beginning June 1st.

Trump claimed in a post on Truth Social that the EU has "been very difficult to deal with" and said trade talks with the bloc are "going nowhere!" In a separate Truth Social, Trump also threatened to impose a 25 percent tariff on Apple (AAPL) iPhones that are not manufactured in the U.S.

Asian stocks ended mixed on Monday as U.S. President Donald Trump threatened to roll out 25% tariffs by the end of next month on smartphones made by Apple, Samsung Electronics Co. and other companies, if they are not manufactured in the U.S.

However, underlying sentiment was underpinned somewhat due to easing trade tensions between the United States and the European Union.

European stocks are up with strong gains, reacting to Trump's decision to delay the 50% levy on EU goods to July 9th.

In commodities trading, West Texas Intermediate Crude oil futures are up marginally at $61.58 a barrel.

Gold futures are down $38.30 or 1.14% at $3,327.50 an ounce, while Silver futures are lowr by $0.134 or 0.4% at $33.475 an ounce.