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Market Jitters: U.S. Stock Futures Slip Ahead of Trade Talks

U.S. stock futures edged lower on Tuesday morning as investors braced for upcoming trade negotiations between the United States and its key trading partners. The uncertainty surrounding tariff policies and global trade relations has kept markets on edge, with the S&P 500, Dow Jones, and Nasdaq futures all showing declines in premarket trading. The Trump administration has urged countries to submit their best trade proposals by Wednesday, aiming to accelerate discussions amid ongoing tensions with China and the European Union. President Trump and Chinese leader Xi Jinping are expected to speak later this week, a conversation that could provide clarity on the future of trade relations. Market analysts suggest that investor sentiment remains fragile due to the fluid nature of trade policies. The Organisation for Economic Cooperation and Development recently revised its global growth forecast downward, citing the impact of trade uncertainties on the U.S. economy. Meanwhile, Deutsche Ba...
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Bank of Canada Holds Steady Amid Economic Resilience

The Bank of Canada is expected to maintain its current interest rate of 2.75% at its upcoming policy meeting, following stronger-than-anticipated economic growth in the first quarter of 2025.  

Recent data from Statistics Canada revealed that the economy expanded at an annualized rate of 2.2%, surpassing forecasts of 1.7%. This growth was largely driven by increased exports, particularly in passenger vehicles and industrial machinery, as businesses rushed to stockpile goods ahead of newly imposed U.S. tariffs.  

Despite the positive headline figures, underlying domestic demand remains weak, with household spending growth slowing to 0.3%, down from 1.2% in the previous quarter. Additionally, residential investment declined by 2.8%, reflecting a downturn in housing resale activity.  

While some economists argue that the central bank should resume rate cuts to cushion the economy against potential trade-related disruptions, the Bank of Canada appears poised to hold steady for now. Analysts suggest that policymakers are waiting for further clarity on inflation trends and the broader impact of tariffs before making any adjustments.  

With uncertainty looming over the global trade landscape, the Bank of Canada’s cautious approach underscores its commitment to balancing economic stability with inflation control. The next policy announcement is scheduled for June 4, where officials will provide further insights into their outlook for the remainder of the year.

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