Author: Reuters

Canada’s main stock index was flat on Wednesday in choppy trading ahead of U.S. President Donald Trump’s reciprocal tariff announcement, with investors fearing significant ripple effects on global economic growth.

Toronto Stock Exchange’s S&P/TSX composite index was down 0.03% at 25,025.74 points, after two straight sessions of gains.

Trump, who has kept the world guessing on the details of the levies plans for weeks, is set to announce sweeping reciprocal tariffs on global trading partners at 1600 ET (2000 GMT), in what the White House has dubbed “Liberation Day.”

The tariffs, which will take effect immediately upon announcement, are expected to trigger price increases, prompt retaliatory measures from affected countries and disrupt decades of established trade practices.

“We are heading into a very, uncertain period and it is going to be a rough ride … this is a day where people should be already positioned in what they consider to be safer havens,” said Michael Sprung, president at Sprung Investment Management.

Communication stocks led the declines on Canada’s benchmark index, down 0.8%.

Materials stocks declined for the second straight session, down 0.6%, tracking lower copper prices.

Energy stocks fell 0.5%, as oil prices extended losses on concerns that an escalating trade war could dampen demand for crude.

Looking ahead, market participants will turn to Federal Reserve Chair Jerome Powell’s speech on Friday for insights on the health of the U.S. economy and trajectory of interest rates.

Traders expect three rate cuts from the Fed this year, although concerns about inflation driven by tariffs are adding uncertainty to the outlook.

Among individual stocks, Blackberry fell 11.6% after the cybersecurity firm forecast a revenue decline in fiscal 2026 as it anticipated weak spending on its cybersecurity products.

Canada’s main stock index struggled for direction on Thursday, a day after U.S. President Donald Trump’s announcement of tariffs on auto imports intensified the global trade war.

Toronto Stock Exchange’s S&P/TSX composite index was down 0.04% at 25,151.30.

In a late-night announcement on Wednesday, Trump unveiled his plan to implement 25% tariffs on imported cars and light trucks effective on April 3, the day after he plans to announce reciprocal tariffs aimed at the countries he blames for the bulk of the U.S. trade deficit.

Earlier this week, investor sentiment had slightly improved after Trump indicated that not all of his threatened reciprocal levies would be imposed on April 2 and that some countries may get breaks.

“The short term trading today is completely tied to the announcements and expectations of the tariffs,” said Colin White, president and chief executive officer at Verecan Capital Management.

“But additional announcements from either the U.S. administration or any other administration are going to be very closely scrutinized.”

On TSX, information technology fell for the second straight session, down 1%, the most among all sectors.

TSX rises as potential US tariff exemptions keep spirits high

Blockchain farm operator Bitfarms dropped about 1%, after it reported its fourth-quarter results and bitcoin fell 1.1%.

Consumer discretionery fell 0.6%; Magna International declined the most, down 7%.

Keeping losses in check, materials gained 1.5%, tracking higher gold prices that scaled a record peak, as investors fled to safe-haven assets after Trump’s new tariff announcement.

“Precious metals and energy … have been very positive for maintaining the overall market value of the Canadian market”, White said. Domestic investors are awaiting Canada’s January GDP figures and the U.S. Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditure (PCE) data, that are set to be released on Friday.

Canada’s main stock index rose on Tuesday, building on the previous day’s gains as optimism about narrower-than-feared tariffs kept investor hopes high.

Toronto Stock Exchange’s S&P/TSX composite index was up 0.41% at 25,408.87 — near the three-week high reached in the previous session.

U.S. President Donald Trump on Monday suggested that not all proposed levies would be enforced by April 2, with some countries potentially receiving exemptions.

“Yesterday everything went higher up based on what the market perceived as positive news out of the White House on tariffs,” said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.

“I think today is just a little bit carried forward from the previous session”.

On TSX, the materials and energy led the sectoral gains, rising 1.4% and 0.6%, respectively.

Gold prices rose on demand for safe-haven amid uncertainty over Trump’s tariff plans for next week that could potentially boost inflation.

Copper prices also gained as traders kept up speculative buying based on expected tariffs.

Meanwhile, oil prices rose for the fifth consecutive day on expectations that global supply may tighten after the U.S. announced tariffs on countries buying Venezuelan crude.

South of the border, a conference board report showed that an index tracking consumer confidence dropped to 92.9 in March, at a time when worries persist that a global trade war could fan inflation and slow the economy. Economists were expecting a reading of 94.

Toronto’s main stock index rose 1% on Friday ahead of Mark Carney’s appointment as prime minister of Canada, while still set for a weekly loss amid growth concerns from an ongoing trade war.

The Toronto Stock Exchange’s S&P/TSX composite index was up 1.01% at 24,446.46, with a majority of sectors clocking gains.

Carney, a former central banker and political novice, has projected himself as the best person to take on U.S. President Donald Trump, who has repeatedly discussed annexing Canada and escalating tariff wars, potentially risking a recession for Canadians.

TSX’s technology index led the gains, rising 2.3%, boosted by a 5.2% surge in e-commerce firm Shopify.

Financials with the heaviest weighting on the index, jumped 0.9%, with a similar move seen in industrials.

Wall Street also became the source of optimism, with the benchmark S&P 500 index soaring more than 1% on Friday following a selloff earlier in the week.

Toronto stocks slip as tariff jitters keep investors on edge

Despite the day’s gains, the Canadian benchmark index was down 2.2% for the week so far, as Trump’s erratic tariff onslaught and retaliations from Canada and the European Union fueled risk aversion in global markets.

“The uncertainty and confusion that is being generated and emanating from Washington is having ripple effects through the Canadian and U.S. markets. Tariffs are obviously front and centre,” said Brian Madden, chief investment officer at First Avenue Investment Counsel.

Oil prices were stable on Friday after a more than 1% loss in the previous session.

Bucking the trend, capped communications lost 1.2%.

In corporate news, Mattr Corp climbed 10.3% after the material technology company reported its quarterly results.

On the economic front, Canadian wholesale trade grew by 1.2% in January from December, driven by growth in motor vehicles and parts, as well as the building materials and supplies subsectors.

Canada’s main stock index edged down on Thursday in volatile trading, as investors remained risk-averse amid an intensifying trade war with the United States.

The Toronto Stock Exchange’s S&P/TSX composite index was down 0.1% at 24,394.32.

Information technology led the declines, falling 2.1% to a four-month low. The sub-index has dropped 17.6% from its record peak a month ago.

Consumer staples and healthcare shed 1.2% each.

“It’s still a very volatile situation and things could change quite rapidly,” said Colin Cieszynski, chief market strategist at SIA Wealth Management, adding the “trade war with the U.S. is a huge risk to Canada”, which is being reflected in the equities.

U.S. President Donald Trump’s wavering trade policies have triggered a global trade war, rattling investors, consumers and business confidence, while increasing recession risks for the United States as well as for Canada.

The Bank of Canada, which delivered a 25-basis point interest rate cut on Wednesday, also raised concerns about inflationary pressures and weaker growth stemming from tariff uncertainties.

TSX falls as Trump hikes tariffs on Canadian metals

Further adding pressures on equities, the Canadian 10-year benchmark yield jumped five basis points at 3.130%.

Wall Street’s benchmark S&P 500 lost 0.7% on Thursday, primarily hit by Trump’s rhetoric to impose a 200% tariff on all wines and other alcoholic products from the European Union.

Trump on Wednesday also threatened to impose additional tariffs on EU goods, as major U.S. trading partners vowed to retaliate against the trade barriers already erected by the U.S. president.

The materials index, however, added 1.4% due to gold prices trading at a near all-time high.

Latest U.S. trade policies have helped gold, an asset preferred by investors amid geopolitical and economic turmoil, gain 12% so far this year.

Birchcliff Energy jumped 12.5%, the biggest individual gainer on the TSX, after it updated its annual average production outlook.

WASHINGTON: U.S. President Donald Trump on Tuesday ramped up a burgeoning trade war with Canada, saying he will double tariffs set to take effect within hours on all imported steel and aluminum products from Canada to 50%, amplifying a focus on tariff increases that has sent financial markets reeling and business leaders ringing alarm
bells about weakening consumer demand.

Trump’s latest salvo was in response to the premier of Ontario’s announcement that he would place a 25% surcharge on the electricity Canada’s most populous province supplies to 1.5 million U.S. homes unless Trump drops all of his tariff threats against the northern U.S. neighbor.

In a post on his Truth Social media platform, Trump said he has instructed Commerce Secretary Howard Lutnick to add an additional 25% tariff on the metals products from Canada that will go into effect on Wednesday morning. Tariffs totaling 25% on all imported steel and aluminum products originating from other countries will start that day.

Trump further lashed out at Canada for trade protections it has in place on dairy and other agricultural products, and he threatened to “substantially increase” tariffs on cars coming into the U.S. that are set to take effect on April 2 “if other egregious, long time Tariffs are not likewise dropped by Canada.” Ontario Premier Doug Ford was not bowed.

“We will not back down. We will be relentless. I apologize to the American people that President Trump decided to have an unprovoked attack on our country,” Ford told MSNBC after Trump’s announcement. About 1.5 million homes and businesses in New York state, Michigan and Minnesota are powered by the province’s utilities, and Trump said he would declare a national emergency to mobilize resources to assist the affected areas.

Canada will be in trade war with US for foreseeable future, says Trudeau

The latest escalation occurred at a time when there is effectively a power vacuum in Ottawa. Prime Minister Justin Trudeau is stepping down and is due to formally hand over power to his successor Mark Carney this week.

Carney, who overwhelmingly won the leadership race of the ruling Liberals last weekend, told reporters on Monday he could not speak to Trump until he had formally been sworn in as prime minister.

Trump’s broadside delivered another painful jolt to financial markets, with the benchmark S&P 500 index sliding more than 1.0% as investors worry the import taxes will
hurt U.S. growth and rekindle inflation. The Toronto Stock Exchange’s S&P/TSX Composite index was down about 0.6% and the Canadian dollar fell to a one-week low against the
greenback.

Since hitting a record high about a month after Trump’s inauguration, the S&P 1500 index – among the widest measures of the U.S. stock market – has lost at least $5 trillion in value, a blow to wealth that could also stymie household spending.

Trump is set to meet later on Tuesday with about 100 chief executives of U.S. firms as evidence grows that his trade policies are posing a downside risk to the economy, threatening to dash a “soft landing” that until recently appeared as the base case and reignite inflation.

Whether any of them will be willing to raise such concerns directly with Trump is unknown. Ahead of the gathering, however, businesses ranging from airlines to department stores said his fast-shifting trade policies are starting to have a chilling
effect across many industries, as consumers pull back on purchases of everything from basic goods to travel.

Confidence takes a hit

Broader 25% levies on all steel and aluminum imported to the U.S. from anywhere are due to take effect early on Wednesday, and another round of tariffs on autos as well as tit-for-tat reciprocal tariffs are lined up for early April. Canada and China have retaliated with their own tariffs on U.S. exports, while Mexico stopped short of retaliation after Trump delayed his planned levies on the southern U.S. neighbor.

Donald Trump orders new tariff probe into US lumber imports

The metals tariffs will apply to millions of tons of steel and aluminum imports from Canada, Brazil, Mexico, South Korea and other countries that had been entering the U.S. on a duty-free basis under carve-outs. Trump has vowed that the tariffs will be applied “without exceptions or exemptions” in a move he hopes will aid the struggling U.S. industries.

Trump’s promise to double the metals levies on Canada sent some aluminum prices soaring. Price premiums for aluminum on the U.S. physical market climbed to a record high above $990 a metric ton on Tuesday.

Trump’s hyper-focus on tariffs since taking office in January has rattled investor, consumer and business confidence in ways that economists increasingly worry could cause a recession.

A small business survey on Tuesday showed sentiment weakening for a third straight month, fully eroding a confidence boost following Trump’s November 5 election victory, and a survey of households by the Federal Reserve Bank of New York on Monday
showed consumers growing more pessimistic about their finances, inflation and the job market.

Reuters polls of economists last week showed risks to the Mexican, Canadian and U.S. economies are piling up amid a chaotic implementation of U.S. tariffs that has created deep uncertainties for businesses and decision-makers.

The surveys showed 70 of 74 economists polled across Canada, the U.S. and Mexico judged that the risk of a recession had increased, and upside risks to inflation in the U.S. rose in particular. Speaking after the close of trading market on Monday, Delta Air
Lines CEO Ed Bastian warned that economic worries among consumers and businesses were already hurting domestic travel.

“We saw companies start to pull back. Corporate spending started to stall,” Bastian told CNBC. “Consumers in a discretionary business do not like uncertainty.”

Canada’s main stock index fell on Tuesday, as investors priced in U.S. President Donald Trump’s announcement of additional tariffs on Canadian metals.

The Toronto Stock Exchange’s S&P/TSX composite index was down 0.28% at 24,313.03.

Trump on Tuesday doubled his planned tariff on all steel and aluminum products coming into the United States from Canada, bringing the total to 50%, in response to the Ontario province placing levies on electricity coming into the U.S.

“It’s obviously not good. The market is anticipating a slowdown in future growth and it’s trying to price it in,” said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.

“The President is sticking to his guns and doing what he said he was going to do and (he is) not really, at this point in time, concerned about the ramifications.”

TSX falls more than 1% as global trade war concerns linger

Investors are also looking towards the Bank of Canada’s monetary policy decision on Wednesday, with traders expecting the central bank to support the economy by cutting interest rates by 25 basis points.

The benchmark index fell to a four-month low on Monday due to worries that Trump’s tariffs on key trade partners such as Canada and Mexico have triggered risks of recession for all three countries.

“There’s a very clear risk off mentality at the moment,” said Josh Sheluk, portfolio manager at Verecan Capital Management.

The materials index gained 2.5%, largely due to a 1% rise in gold prices. Demand for the safe-haven asset soared amid concerns that global trade tensions stemming from U.S. tariffs could hurt economic growth.

Precious metal companies such as New Gold and Aya Gold & Silver were among the biggest gainers on the main index, rising 7.2% and 10.3%, respectively.

On the other hand, healthcare and consumer discretionary led losses, falling 2.3% and 1.7%, respectively.

Canada’s main stock index fell more than 1% on Monday, as investors were averse to taking risks over persistent worries about the global trade war.

The Toronto Stock Exchange’s S&P/TSX composite index was down 1.14% at 24,476.66.

Information technology led the sectoral declines with a 2.9% fall. It was dragged by a 6.7% drop in shares of electronic equipment company Celestica.

Financials, which hold the heaviest weighting on the main index, lost 1%.

U.S. President Donald Trump threatened additional tariffs against Canadian imports on Friday, a day after he delayed implementation of certain levies – the latest in a fluctuating trade policy stance that has stoked investor concerns.

“We continue to see a lot of anxiety around the trade policies and tariffs from the new U.S. administration,” said Angelo Kourkafas, investment strategist at Edward Jones Investments.

“We still have no clarity necessarily about what the end goal is going to be on the trade front.”

TSX inches up, but still set for worst week in nearly 18 months

A Reuters poll found that recession risks were mounting for Mexico, Canada and the U.S. due to chaos around trade duties. Trump, in an interview on Sunday, declined to predict whether the U.S. could face a recession.

Meanwhile, former central banker Mark Carney won the race to become leader of Canada’s ruling Liberal Party and will succeed Justin Trudeau as prime minister.

Carney, who supports dollar-for-dollar retaliatory tariffs in response to Trump’s measures, has argued that he was best placed to oversee trade negotiations with the U.S. President.

Later this week, the Bank of Canada is widely anticipated to deliver a 25 basis points interest rate cut. BofA Global Research expects the central bank to provide additional support to the Canadian economy by cutting rates further.

Among individual stocks, Whitecap Resources fell 13%, making it the worst hit on the TSX, after the Canadian oil producer was set to merge with peer Veren in an all-stock deal valued at C$15 billion ($10.43 billion) including debt.

Canada’s main stock index recouped early losses to rise on Friday, as investors parsed domestic and U.S. employment data, but remained on track for its biggest weekly fall since September 2023.

At 10:45 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index rose 0.2% to 24,635.20.

For the week, the index was still set to fall 3%. The benchmark lost 1.2% on Thursday.

Throughout the week, investors faced a tumultuous ride with trade uncertainties. On Tuesday, U.S. President Donald Trump’s 25% tariff on imports from Canada and Mexico took effect. But on Thursday, Trump announced a temporary exemption for goods from both countries under a North American trade pact, lasting a month.

On the economic front, Canada’s unemployment rate remained steady at 6.6% in February, with only slight increase in new job additions.

“There are early signs that the intensification of uncertainty from U.S. tariff threats, and pull back in measures of business confidence, had an impact on hiring on the more trade-sensitive goods producing side of the economy,” said Nathan Janzen, assistant chief economist at Royal Bank of Canada.

TSX drops as trade tensions hurt sentiment

In the U.S., job growth improved in February, though the unemployment rate ticked up to 4.1%. Nonfarm payrolls rose by 151,000 jobs, slightly below the 160,000 forecast by economists polled by Reuters.

Among TSX sectors, energy and materials led the gains with 2.6% and 1.5%, respectively.

Oil prices rose 1.34% on Friday, but were still on course for a nearly 4% weekly decline.

Copper prices surged to their highest level in nearly five months, buoyed by optimism over potential stimulus from China, the world’s leading consumer.

Among individual stocks, MDA Space jumped 12.8% after the space technology company forecast first-quarter revenue above estimates.

Conversely, Algonquin Power & Utilities Corp lost 6.6% after the utility firm’s fourth-quarter profit missed estimates.

Canada’s main stock index fell to its lowest level in nearly two months, as investors assessed President Donald Trump’s imposition of new tariffs on the United States’ three biggest trading partners.

At 10:00 a.m. ET (1500 GMT), the Toronto Stock Exchange’s S&P/TSX composite index dropped 1.8% to its lowest since January 14. That put the index on track for its worst day in more than two months and its second straight session of losses.

All the 11 sectors declined, with energy leading the losses with a 2.2% fall. Financial and technology lost 2.4% each.

Trump imposed a 25% tariff on imports from Mexico and Canada, effective Tuesday, along with a doubling of duties on Chinese goods to 20%.

“If the U.S. tariffs remain in place, Canada will undoubtedly fall into recession. The limited decline in the loonie so far suggests markets are still pricing in a quick u-turn from the Trump administration,” said Stephen Brown, deputy chief North America economist at Capital Economics.

TSX inches up as investors evaluate tariff impact and economic data

China announced additional tariffs ranging from 10% to 15% on select U.S. imports, effective March 10. Canada and Mexico, accustomed to a nearly tariff-free trading relationship with U.S., were poised to swiftly retaliate against their long-standing ally.

Canadian Prime Minister Justin Trudeau announced that Ottawa would impose immediate 25% tariffs on C$30 billion ($20.7 billion) worth of U.S. imports. Furthermore, should Trump’s tariffs persist for 21 days, an additional C$125 billion ($86.2 billion) in tariffs would be enacted.

The Canadian dollar was steady. Oil prices extended losses after reports of OPEC+ planning to proceed with output increase in April.

Company-wise, Magna International fell 4.6% after BofA Global Research downgraded its rating to “neutral”.

Teck lost 2.5%, after the Canadian miner’s CEO said it was looking to sell zinc to Asia instead of the U.S. to contend with new tariffs.