TSX rebounds as investors await negotiations over tariffs
Canada’s main stock index rose on Tuesday after three straight sessions of losses as information and technology stocks powered the broader gains, while investors await any sign of the U.S. opening up for negotiations over some of the aggressive tariffs.
Toronto Stock Exchange’s S&P/TSX composite index was up 2% at 23,325.64 points.
White House economic adviser Kevin Hassett said on Tuesday U.S. trade negotiators are prioritizing allies as they move forward on trade and are focused on big trading partners that have had big trade surpluses for years with the United States.
Uncertainty, however, persisted as the U.S. called China’s retaliation against its tariffs a “big mistake”.
China refused to bow to what it called “blackmail” after U.S. President Donald Trump threatened to increase tariffs on imports from China to over 100% in response to Beijing’s matching of his earlier tariff announcements.
“The TSX often mirrors U.S. indices, and with those showing cautious optimism today after tariff-driven sell-offs, any overnight developments — especially if China doubles down — could trigger volatility,” said Graham Priest, investment advisor at BlueShore Financial.
Wall Street’s main indexes also bounced back from a heavy selloff on Tuesday.
On TSX, information and technology, up 3.6%, led sectoral gains.
Materials stocks rose 2.7%, tracking higher copper and aluminium prices benefitting from a weaker U.S. dollar, while gold prices again rose above $3,000 per ounce as demand for the safe-haven asset increased.
On the flip side, communication shares dropped 1.2% with BCE leading the declines, down 3%.
On the data front, Canadian economic activity expanded at a slower pace in March as employment declined and prices heated up, Ivey Purchasing Managers Index (PMI) data showed.
Looking ahead, investors will focus on the U.S. consumer price inflation reading on Thursday, which could offer more clues on the inflation trajectory in the world’s largest economy.