Bay Street is likely to see a mixed start on Tuesday with investors tracking updates on U.S. debt ceiling deal, and reacting to the trend in commodities markets.
According to reports, a group of Republican lawmakers on the party's hard right said Monday they would oppose the deal reached by President Joe Biden and House Speaker Republican Kevin McCarthy over the weekend.
There are also concerns that proposed spending cuts in the debt ceiling deal could weigh on U.S. economic growth. Voting on the bill is set to start later this week in the House and the Senate.
The Canadian market ended modestly higher on Monday on thin volumes. News about U.S. President Joe Biden and Congressional Republican McCarthy agreeing on a debt ceiling deal on Saturday to avert a fast-approaching default in early June aided sentiment.
The benchmark S&P/TSX Composite Index ended with a gain of 47.64 points or 0.24% at 19,967.95. The index touched a low of 19,929.01 and a high of 19,991.89.
Asian stocks ended mixed on Tuesday, as concerns that China's economic recovery is losing steam and signs of rising tensions between Washington and Beijing offset investor optimism over the agreement of a deal to raise the U.S. debt ceiling and avert default in the world's largest economy.
European stocks are turning in a mixed performance as investors await the passage of the U.S. debt ceiling deal before June 5.
A drop in eurozone economic sentiment, hawkish Fed expectations and concerns around China's economic recovery also keep investors nervous.
In commodities, West Texas Intermediate Crude oil futures are down $0.95 or 1.3% at $71.72 a barrel.
Gold futures are gaining $10.20 or 0.52% at $1,954.50 an ounce, while Silver futures are down $0.020 or 0.09% at $23.340 an ounce.
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