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 TSX Composite Index remained in the red 29.01 points to midday to 25,002.50.
The Canadian dollar nosed up 0.06 cents at 72.40 cents U.S.
Trump announced on Sunday a 100% tariff on movies produced outside the U.S., saying the American film industry was dying a "very fast death" due to the incentives offered by other countries to lure filmmakers.
Shares of U.S. film and television production firms were down before the bell.
While the U.S. and China's talks provided a brief respite on Friday, after Beijing said it was considering Washington's offer to discuss Trump's 145% tariffs, the uncertainty around the outcome continues to loom over the markets.
Separately, Prime Minister Mark Carney said on Friday he will be in Washington on Tuesday for what he expects to be "difficult but constructive" talks with Trump.
Investors will also focus on the Fed's meeting, where the rates are expected to be kept steady.
Meantime, in Canada, Skeena Resources was in the news, on new developments regarding its Eskey Creek Gold-Silver Project.
Skeena shares gained 74 cents, or 4.8%, to $16.26.
Parkland rose $2.34, or 6.5%, to $38.62, after U.S.-based Sunoco LP said it will buy the company in a deal valued at about $9.1 billion, including debt.
ON BAYSTREET
The TSX Venture Exchange eked up 0.55 points to 656.94.
The 12 subgroups were evenly divided by noon hour EDT, as energy slumped 2%, health-care lost 1.5%, and telecoms were off 0.7%.
Gold led the half-dozen gainers, up 2.9%, while materials improved 1.3%, and industrials eked higher 0.1%.
ON WALLSTREET
The S&P 500 moved lower to start the week as investors monitored the latest developments on global trade, including another surprise set of tariffs from President Donald Trump.
The Dow Jones Industrials pushed higher 65.63 points to 41,383.06.
The much broader index skidded 19.29 points, to 5,667.38, putting the index in danger of ending its longest winning streak since November 2004.
The NASDAQ Composite faded 96.72 points to 17,881.01.
The major indexes cut losses after a data Monday from the Institute for Supply Management reflected stronger-than-expected service sector activity in April, even as company executives reported rising concern about tariffs.
At its lows, the Dow fell as much as 253.99 points, while the S&P 500 and NASDAQ lost around 1% each before rebounding.
Trump on Sunday said he authorized relevant government agencies to begin imposing a 100% tariff on films produced abroad, calling efforts from other nations to attract film productions a “national security threat.” It remains unclear if the levies would impact movies shown in theaters or movies on streaming services.
Shares of Walt Disney and Netflix — all companies that film abroad — traded 1.4% and 3.4% lower in early morning trading, respectively. Warner Bros Discovery also shed around 3%.
Trump also told reporters on Sunday that “we’re negotiating with many countries, but at the end of this, I’ll set my own deals — because I set the deal, they don’t set the deal.” Trump added that has no plans to talk to Chinese President Xi Jinping, dashing investors’ hopes that progress is being made to ease U.S.-China trade tensions.
Prices for the 10-year Treasury fell, raising yields to 4.34% from Friday’s 4.31%. Treasury prices and yields move in opposite directions
Oil prices dropped $1.56 to $56.73 U.S. a barrel.
Prices for gold jumped $80.50 to $3,223.80 U.S.
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