Bay Street Likely To Open On Positive Note

(RTTNews) - Canadian shares are likely to move higher Monday morning following Canada reversing its decision to impose a Digital Service Tax on American technology companies.

The move paves the way for the resumption of trade negotiations between the U.S. and Canada. According to Canadian finance ministry, Prime Minister Carney will resume negotiations with U.S. President Donald Trump, aiming for a deal by the third week of July.

Canadian stocks closed weak on Friday, losing earlier gains after Trump halted all trade discussions with Canada due to the Canadian digital services tax on American technology companies.

The benchmark S&P/TSX Composite Index briskly moved to an intraday high of 26,806.62 just before noon. However after Trump's announcement on ending talks with Canada, the index turned lower to settle at 26,692.32, down by 59.63 (or 0.22%).

Trump announced on his social media platform, Truth Social, that the US is terminating all discussions on trade with Canada with immediate effect and that tariffs on Canada shall be announced in a week.

Trump has taken this hard stance as the digital services tax Canada has imposed caused him displeasure.

In a brief speech on CBC TV, Canadian PM Mark Carney assured that his government will continue "complex negotiations" with the US "in the best interest of Canadians".

Asian stocks ended mostly higher on Monday as hopes of Fed rate cuts as well as easing tensions in the Middle East helped boost investors' appetite for riskier assets.

With a July 9 deadline looming, traders also assessed the likely impact of U.S. President Donald Trump's trade war on the world's largest economy.

The major European markets are mostly subdued with investors making cautious moves amid uncertainty on the tariff front.

In commodities trading, West Texas Intermediate Crude oil futures are down $0.21 or 0.32% at $65.31 marginally at $65.56 a barrel.

Gold futures are up $7.80 or 0.23% at $3,295.40 an ounce, while Silver futures are down $0.200 or 0.55% at $36.170 an ounce.