Bay Street May Open On Weak Note

(RTTNews) - Canadian shares look headed for negative start on Tuesday, weighed down by weak oil prices, and concerns about global trade after U.S. President Donald Trump threatened 200% tariffs on China if Beijing does not export rare-earth magnets to the U.S.

In the Oval Office on Monday, Trump spoke of Washington's strength in its standoff with Beijing and warned that if he played the "incredible cards" at his disposal, it would "destroy China."

In earnings news, The Bank of Nova Scotia (BNS.TO) reported third quarter net income of C$2.5 billion compared to C$1.9 billion, last year. Diluted earnings per share was C$1.84, compared to C$1.41.

BMO Financial Group reported a net income of $2.33 billion or $3.14 per diluted share for the quarter ended July 31, compared with a profit of $1.87 billion or $2.48 per diluted share in the same quarter last year.

CGI Inc. (GIB-A.TO) said that the State of New Jersey has awarded it a 10-year contract to improve the State Integrated Recovery Operations Management Systems (SIROMS). Under the new contract, CGI will help the state to efficiently manage the relief funds and reduce the cost of natural disaster recovery.

In economic news, data from Statistics Canada showed manufacturing sales in Canada increased 1.8% in July, after a 0.3% increase in June.

Wholesale sales likely rose by 1.3% month-over-month in July 2025, following a 0.7% increase in the previous month, according to preliminarty estimates.

The Canadian market ended weak on Monday as investors resorted to profit-taking from last week's record high close. However, selling pressure was somewhat subdued amid renewed hopes of BoC rate cuts in line with anticipated US Fed rate cuts.

The benchmark S&P/TSX Composite, which touched a low of 28,138.70 early on in the session, settled at 28,169.94, down by 163.19 points or 0.58%.

Asian stocks closed lower on Tuesday as Fed independence concerns resurfaced and investors awaited Nvidia results amid hopes it can soothe fears about AI spending.

Trade tensions also kept investors on edge, with U.S. President Donald Trump threatening 200% tariffs on China if Beijing does not export rare-earth magnets to the U.S.

The major European markets are down in negative territory today amid concerns about political uncertainty in France, and renewed trade worries.

In commodities trading, West Texas Intermediate Crude oil futures are down 1.16 or 1.76% at $63.64 a barrel.

Gold futures are gaining $10.00 or 0.3% at $3,427.50 an ounce, while Silver futures are down $0.188 or 0.49% at $38.515 an ounce.