Bay Street May Open Slightly Higher

(RTTNews) - Higher Canadian futures point to a slightly positive start on Bay Street Tuesday morning. The victory of Mark Carney in the Canadian general election and easing concerns about U.S. tariffs may also support the market. However, weak crude oil and gold prices may weigh on sentiment and limit market's upside.

Reports that the U.S. government may lower duties on foreign parts in domestically manufactured cars might help Canadian auto parts makers.

Meanwhile, Carney has stated that his government would take a tough approach to Washington's import tariffs.

The focus is on U.S.-China trade negotiations for more clarity on Trump administration's tariff policies.

On Monday, the Canadian market closed moderately higher after a volatile session. The benchmark S&P/TSX Composite Index saw some wild swings in early trading before eventually ending the day up 88.08 points or 0.4% at 24,798.59.

The volatility on the day came as traders looked ahead to the release of earnings from big-name tech companies like Amazon (AMZN), Apple (AAPL), Meta Platforms (META) and Microsoft (MSFT).

Traders also seemed reluctant to make more significant moves as they await some key U.S. economic data as well as developments on the trade front.

Asian stocks ended mixed on Tuesday, with Japanese markets closed for the Showa Day holiday.

The White House has confirmed President Donald Trump's plan to reduce tariffs on auto parts for cars made in America following intense lobbying by industrial leaders.

At the same time, U.S. Treasury Secretary Scott Bessent put the burden for trade progress squarely on China, increasing confusion about the status of talks between the two countries.

China vowed to stand firm and said that concession and retreat will only make the bully more aggressive.

European stocks are turning in a mixed performance with investors largely reacting to corporate earnings announcements and focusing on the developments on the tariff front.

In commodities trading, West Texas Intermediate crude oil futures are down $1.01 or 1.71% at $61.04 a barrel.

Gold futures are down $26.50 or 0.8% at $3,321.20 an ounce, while Silver futures are gaining $0.215 or 0.65% at $33.220 an ounce.