Author: Reuters

Canada’s main stock index declined on Friday, dragged down by losses in technology shares, as Israel’s widescale strikes on Iran dampened global risk appetite.

The S&P/TSX composite index was down 0.5% at 26,490.64 points.

Israel has warned that the strikes were the start of a prolonged operation to prevent Tehran from building an atomic weapon. Iran has promised a harsh response.

However, U.S. President Donald Trump urged Iran to make a deal over its nuclear programme, saying there was still time for the country to prevent further conflict with Israel.

The downturn in the TSX was limited as investors shifted to safe-haven assets, boosting metal mining shares. The materials sector gained 0.6%

The energy sector rose 1.7% to be the top gainer as the tensions in the Middle East sparked worries about supply disruptions, boosting crude prices.

“I don’t think it’s any surprise that Toronto Stock Exchange is going to hold up greater than New York, which is more based on technology or multinational corporations,” said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.

“Gold and oil make up a big chunk of our market and anything commodities-based is relatively going to do well”.

The technology sector fell 1.5%, while the heavyweight financial stocks were down nearly 1%.

The benchmark index achieved a second consecutive record high on Thursday and appears poised to secure its third straight weekly gain, provided losses remain contained.

Canada’s main stock index was headed for a record high on Friday, as a better-than-expected U.S. jobs report and signs of easing trade tensions between Washington and China fueled investor optimism.

The Toronto Stock Exchange’s S&P/TSX composite index was up 0.6% at 26,486.37 points. The index was set to eclipse Tuesday’s record closing high of 26,426.64 if gains hold.

U.S. nonfarm payrolls rose by 139,000 jobs last month, data released on Friday showed, while economists polled by Reuters had expected a job growth of 130,000.

Meanwhile, White House trade adviser Peter Navarro said on Friday that a planned meeting between U.S. and Chinese officials on trade is expected within seven days, giving hope that the trade war between the world’s two largest economies might de-escalate.

Separately, China on Friday called to improve bilateral ties with Canada.

Earlier this week, U.S. President Donald Trump had doubled tariffs on imports on steel and aluminum.

TSX edges higher amid US-China trade talks and upcoming jobs data

“It’s just a ploy to get everyone to the table and to try to make a deal,” said Michael Constantino, CEO of online investment platform Webull Canada.

Canada’s Industry Minister Melanie Joly said on Thursday that Prime Minister Mark Carney and Trump are in direct communication as part of Ottawa’s bid to persuade Washington to lift tariffs.

“I think the prime minister of Canada and President Trump will at some point come together and do what’s best for both countries,” Constantino said.

Canada’s unemployment rate in May jumped to its highest level in almost nine years, excluding the peak of the COVID-19 pandemic.

On TSX, information and technology stocks gained 1.4% on Friday, tracking gains in tech-heavy Nasdaq index.

Energy subindex gained 1.3% as oil prices rose slightly and were on track for their first weekly gain in three weeks.

Canada’s main stock index rose on Thursday amid choppy trading, as investors assessed news of U.S.-China tariff negotiations and awaited key jobs data from both home and the United States.

The Toronto Stock Exchange’s S&P/TSX composite index was up 0.1% at 26,358.00 points.

Chinese President Xi Jinping held talks with U.S. President Donald Trump by phone, the official Xinhua news agency reported on Thursday. It mentioned the phone talks were at Trump’s request but didn’t provide further details.

“The largest trading partner for the U.S. is China and the fact that Trump and President Xi are holding a call to discuss trade is a positive development, especially given the setbacks that we’ve seen recently”, said Ian Chong, portfolio manager at First Avenue Investment Counsel.

“While the focus looks positive, we still don’t know what’s going to happen because there could be a moment where people are more concerned about non-farm payroll and they might start taking some risk off the table.”

Employment figures from Canada and non-farm payrolls data from the U.S. are scheduled for Friday, which can help assess the impact of Trump’s trade policies on the labour market.

TSX flat as tariff uncertainty lingers; BoC holds key rate steady

Meanwhile data showed on Thursday, Canada’s trade deficit in April widened to an all-time high of a whopping C$7.1 billion ($5.2 billion), as tariffs imposed by Trump sucked out demand for Canadian goods from the United States.

The U.S. tariff hikes on steel and aluminum took effect on Wednesday, prompting concerns from Canadian companies and a major union of more job losses and lost sales.

On TSX, metal miners’ subindex gained nearly 2% as gold prices rose. Energy sector was up 0.5% after oil extended gains.

Conversely, information and technology stocks fell 1%, led by a 9% drop in Descartes after the parametric insurance specialist missed first-quarter result estimates.

Canada’s main stock index struggled for direction on Wednesday, as investors remained cautious on U.S. tariff negotiations with trading partners and assessed the Bank of Canada’s decision to maintain the interest rate.

The Toronto Stock Exchange’s S&P/TSX composite index was flat at 26,426.98 points. The index notched a record peak in the previous two sessions.

The U.S. doubled tariffs on imported steel and aluminum on Wednesday, the same day as the deadline for Washington’s trading partners to make their best offers to avoid hefty “Liberation Day” tariffs from taking effect in July.

Europe’s top trade negotiator said that trade talks between the European Union and the U.S. are going in the right direction.

Also on Wednesday, Trump called China’s Xi Jinping “extremely hard to make a deal with”, pointing to frictions after the White House raised expectations for a long-awaited phone call between the two leaders this week.

Meanwhile, the Bank of Canada held its key benchmark rate at 2.75%, citing the need to assess the effects of U.S. trade policy, but indicated another cut might be necessary if tariffs weaken the economy.

“The market has become a little insensitive to all the trade headlines until we have something more concrete”, said Angelo Kourkafas, senior global investment strategist at Edward Jones.

“The market is choosing to focus again on the fundamental factors…there’s been a lot of reversals in these news headlines, while at the same time economic data have continued to come in pretty strong, which has allowed the markets to look a little bit past those headlines.”

Data showed Canada’s services economy downturn eased in May, as firms grew more hopeful that trade and political uncertainty would become less of a drag on activity over the coming 12 months.

Canadian labor productivity rose by 0.2% in the first quarter.

On TSX, metal miners’ shares gained 0.7% tracking higher gold prices, while the healthcare subindex gained 0.6%.

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%.