Author: Reuters

Canada’s main stock index slipped on Friday, as trade worries over U.S. President Donald Trump’s accusation in a social media post of China violating a tariff agreement offset positive sentiments about domestic economic growth.

“China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!,” Trump said on his Truth Social platform.

The Toronto Stock Exchange’s S&P/TSX composite index was down 0.3% at 26,133.45 points. However, for the week, the index was up 1.2%.

Global equities had initially rallied in the previous session, after the Court of International Trade ruled late on Wednesday to effectively block most levies imposed since January.

However, a U.S. federal appeals court temporarily reinstated Trump’s tariffs on Thursday, to consider the government’s appeal.

“People who were expecting to see some clarity in the market are going to be somewhat disappointed”, said Michael Sprung, president at Sprung Investment Management.

“When Trump says China has violated any sort of agreement the whole premise might be that he might do something retaliatory, which is going to be inflationary and harmful.”

Data showed, Canada’s economy grew faster than expected in the first quarter. But an increase in imports that led to inventory build-up, lower household spending and weaker final domestic demand showed that the economy was battling on the domestic front. Economists have warned that as tariffs continue on Canada, this trend will persist.

This comes ahead of the Bank of Canada’s rates decision next week. The market sees a 22% chance of a rate cut next week, down from 27% before GDP data.

The TSX has gained 5.4% so far in May and was set for its best month in six, boosted by investor optimism on easing of the global trade war earlier this month.

South of the border, U.S. consumer spending increased marginally in April as a rush to beat higher prices from import duties slowed.

On TSX, energy subindex fell 1.3% as oil prices headed for a second consecutive weekly loss.

Healthcare stocks fell 1.7%.

Canada’s main stock index edged lower on Friday, tracking global peers, amid renewed trade tensions sparked by U.S. President Donald Trump’s recommendation of 50% tariffs on European Union imports.

The Toronto Stock Exchange’s S&P/TSX composite index was down 0.13% at 25,821.36 points and set for its first weekly decline in seven weeks.

Global equities tumbled after Trump recommended tariffs on goods from the EU starting on June 1.

“It seems his (Trump) focus is turning towards the eurozone and less towards Canada now … Canadian indices are in positive territory on the year … so we’re doing quite well, relatively,” said Shiraz Ahmed, senior portfolio manager at Raymond James Ltd.

“The challenge is, it’s a very dynamic environment that continues to change on a daily basis,” he said.

On Thursday, the Republican-controlled U.S. House of Representatives passed a sweeping tax and spending bill, raising concerns about worsening fiscal outlook in the world’s biggest economy; the bill now heads to the Senate for approval.

Bank of Canada Governor Tiff Macklem said on Thursday that he expected second-quarter growth to be “quite a bit weaker” than the first quarter, and that it could be worse in subsequent quarters if the uncertainty around U.S. tariffs continued.

The central bank last month forecast annualized first-quarter GDP would be 1.8% but did not give any other projections, citing uncertainty over U.S. tariff policy.

Statistics Canada will release the first-quarter GDP data on May 30, a week before the central bank’s next interest rate decision.

On TSX, information and technology and healthcare stocks fell 1.1% and 1.2% respectively on Friday.

Metal miners’ shares gained 0.8% as gold prices rose 1%.

Canada’s main stock index fell on Wednesday, after six straight sessions of gains, as investors took a breather while awaiting signals from ongoing trade developments.

The Toronto Stock Exchange’s S&P/TSX composite index was down 0.13% at 25,583.02 points after rising 2.6% in the past six sessions and hitting a three-month high last week.

Markets have been rising on trade optimism after a limited U.S.-UK agreement and the United States and China pausing their fierce tariff dispute assuaged fears about a global economic slowdown.

A 90-day tariff pause announced by the U.S. on April 9 for countries other than China, along with solid earnings reports and a cooler-than-expected U.S. inflation reading, helped the index regain ground from early April lows.

“I think all the markets are taking a little bit of a breather now after the recent rallies”, said Michael Sprung, president at Sprung Investment Management.

“The inflation reading and the U.S.-China situation buoyed the market in the immediate past but … expectations of what is likely to happen are becoming more and more uncertain. And so I think the markets going to be looking for some direction”.

TSX gains on US-China tariff agreement

Federal Reserve Vice Chair Philip Jefferson noted that recent inflation data indicate progress toward the Fed’s 2% target, yet the outlook remains uncertain as potential new import taxes could elevate prices.

On TSX, mining stock fell 1.9%, tracking lower gold prices, as easing U.S.-China tensions dimmed bullion’s safe-haven appeal.

Energy subindex slipped 0.6% after oil prices fell as traders eyed a potential jump in U.S. crude inventories, while OPEC lowered its oil supply growth forecast for producers outside OPEC+.

Canada’s main stock index rose on Tuesday, led by gains in technology stocks, as investors assessed U.S. inflation data and its impact on monetary policy outlook.

The Toronto Stock Exchange’s S&P/TSX composite index was up 0.5% at 25,655.67 points.

The U.S. consumer prices rebounded moderately in April, rising 0.2% after a 0.1% dip in March, with inflation expected to pick up in the coming months as tariffs boost import costs.

Following the report, traders leaned into bets that the Federal Reserve would hold off on lowering interest rates until September, while still anticipating two 25-basis-point cuts by year’s end.

“Canadian investors are cautiously optimistic, eyeing U.S. inflation data showing tariff-driven price hikes. The TSX may face mild volatility, but sentiment is buoyed by expectations of Bank of Canada rate cuts. The data’s impact today will be notable but not dominant”, said Graham Priest, investment advisor at BlueShore Financial.

TSX gains on US-China tariff agreement

Meanwhile, the U.S. and China on Monday said they would pause their trade war for 90 days, bringing down reciprocal duties and removing other measures while they negotiate a more permanent arrangement.

“The US-China tariff reduction fueled Monday’s TSX surge, but today’s sentiment may temper as investors weigh the 90-day truce’s fragility, persistent trade uncertainties and domestic economic pressures”, added Graham.

Meanwhile, U.S. Trade Representative Jamieson Greer said a 10% universal tariff on goods entering the United States would stay in place but officials were in talks with many countries to lower additional tariffs imposed.

On TSX, information and technology stocks gained 1.4%, in line with the tech-heavy Nasdaq Composite, while energy stocks advanced 0.9%, tracking gains in oil prices.

In corporate new, WonderFi is up 35.3%, after retail trading platform Robinhood said it will buy the Canadian crypto firm for C$250 million ($178.98 million).

Canada’s main stock index rose on Monday as the United States and China reached a deal to reduce tariffs, boosting investor optimism and easing fears of an all-out trade war disrupting global markets.

The Toronto Stock Exchange’s S&P/TSX composite index rose 0.7% at 25,531.01 points, tracking gains in U.S. peers. The index hit over a three-month high earlier in the session.

The two biggest economies announced on Monday that the U.S. will cut the extra tariffs it imposed on Chinese imports in April to 30% from 145%, while Chinese duties on U.S. imports will reduce to 10% from 125%. The new measures will be effective for 90 days.

“Canadian markets can benefit from the big easing in trade tensions (as) it shows that the tariff war may be able to get resolved more quickly than people had previously thought”, said Colin Cieszynski, chief market strategist at SIA Wealth Management.

The U.S.-Sino deal comes days after a U.S.-UK limited trade agreement, easing fears that U.S. President Donald Trump’s reciprocal tariffs announced on April 2 would roil global trade and spark a worldwide recession.

Back home, Canadian Prime Minister Mark Carney’s new cabinet will be sworn in on Tuesday.

On TSX, energy stocks gained 3.1%, tracking a jump in oil prices, while information and technology stocks advanced 4.1%.

On the flip side, mining stocks fell nearly 4% after safe-haven gold fell more than 2%.

Pan American Silver fell 14.1% after the miner plans to acquire MAG Silver Corp in a transaction that values the silver mining company at about $2.1 billion. Conversely, MAG Silver rose 7.2%.

Hudbay Minerals jumped 8.8% after the miner beat first-quarter profit and revenue estimates. Shares also rose on the back of higher copper prices.

Canada’s main stock index slipped on Monday, as U.S. President Donald Trump’s new tariffs sparked fresh investor concerns, ahead of the Federal Reserve’s monetary policy decision this week.

The Toronto Stock Exchange’s S&P/TSX composite index was down 0.4% at 24,942.81 points.

Trump on Sunday announced a 100% tariff on movies produced outside the U.S., but offered little clarity on how the levies would be implemented.

Shares of U.S. media firms tumbled amid concern that the latest tariffs could increase the cost for Hollywood studios and disrupt the global entertainment industry.

“A lot of movies are made in Canada…it makes it very economical for the U.S. companies to come up and film a movie here versus down in the U.S. So, not a good announcement for us here in Canada”, said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.

Meanwhile, data showed that Canada’s services economy contracted for a fifth straight month in April as uncertainty around trade policy and the country’s general election weighed on activity.

The spotlight this week will be on the Federal Reserve, which is widely expected to leave interest rates steady on Wednesday.

On the TSX, energy shares led sectoral losses with a 1.9% fall, tracking a drop in oil prices.

Conversely, mining stocks were up 0.8% after gold prices gained more than 2%.

Canadian fuel refiner and retailer Parkland rose 7.6% after U.S.-based Sunoco LP said it will buy the company in a deal valued at about $9.1 billion, including debt.