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.
Comments