Canadian shares are likely to open lower on Wednesday, tracking weak Asian and European stocks amid growing uncertainty about U.S.-China trade deal and escalating political tensions in Hong Kong.
The much anticipated speech by President Donald Trump at the Economic Club of New York on Tuesday failed to provide details about the state of trade talks between the U.S. and China.
Trump said a significant phase one trade deal with China "could happen soon" but stressed that he would only accept an agreement that is good for U.S. companies and workers, and added that tariffs on Chinese goods will be increased if China does not reach a trade deal with the U.S.
Weak crude oil prices may weigh on energy shares. However, gold stocks may moved up, tracking higher bullion prices and limit market's downside.
In company news, Loblaw Companies Limited (L.TO) reported adjusted third-quarter net earnings of $458 million or $1.25 per share, compared with an adjusted profit from continuing operations of $466 million or $1.24 per share in the same quarter last year when the company had more shares outstanding.
Canada Goose Holdings Inc. (GOOS.TO) reported adjusted net income of $63.6m, or $0.57 per diluted share for the second quarter, compared to adjusted net income of $51.1m, or $0.46 per diluted share a year ago.
Asian markets drifted lower on Wednesday, weighed down by Trump's comments that tariffs on Chinese goods will be increased in the event of the two countries not reaching a trade deal soon.
Trump said a significant phase one trade deal with China "could happen soon" but stressed that he would only accept an agreement that is good for U.S. companies and workers.
European shares are exhibiting weakness amid uncertainty about U.S.-China trade deal after Trump threatened further increase in tariffs on Chinese goods, and on rising tensions over the anti-government protests in Hong Kong.
In commodities, crude oil futures are declining $0.22, or about 0.4%, at $56.58 a barrel.
Gold futures for December are up $11.70, or 0.8%, at $1,465.40 an ounce.
Silver futures for December are gaining $0.233, or 1.4%, at $16.925 an ounce, while Copper futures for December are down marginally at $2.6425 per pound.