Equities in Canada’s largest market found some traction in the early going on Monday, as gains in technology and mining shares were offset by losses in energy and healthcare shares, while the latest threat of U.S. tariffs lowered investor risk appetite.
The TSX Composite Index recovered 83.64 points to begin the week at 27,106.89
The Canadian dollar dipped 0.03 cents at 73.04 cents U.S.
U.S. President Donald Trump on Saturday announced a 30% tariff on most imports from the EU and Mexico starting August 1, despite ongoing trade negotiations.
Trump had issued a letter late on Thursday implementing a 35% tariff rate on Canada, adding that the rate would go up if Canada retaliated.
Exclusion for goods covered by the United States-Mexico-Canada Agreement on trade are expected to stay, while the 10% tariffs on energy and fertilizer are also not set to change.
On the macroeconomic scene, Statistics Canada says wholesale trade for May edged up 0.1% to $84.2 billion.
ON BAYSTREET
The TSX Venture Exchange gained 4.33 points to 788.13.
All but three of the 12 TSX subgroups were higher in the first hour, with gold brighter 1.2%, while materials picked up 0.8%, and information technology gathered 0.6%.
The three laggards proved to be energy, down 0.7%, consumer discretionary sliding 0.2%, and financials 0.1% to the bad.
ON WALLSTREET
Stocks were little changed Monday even after President Donald Trump threatened high tariffs on more countries over the weekend. Losses were kept in check as investors bet those duties will eventually be negotiated down and looked ahead to a busy week for second-quarter earnings season.
The Dow Jones Industrials sank 9.75 points to start Monday at 44,361.76.
The S&P 500 lost 5.33 points to 6,254.42.
The NASDAQ Composite eked up 4.24 points to 20,589.77.
Investors continue to monitor ongoing updates on the tariff front, after Trump announced Saturday that the U.S. will impose 30% tariffs on the European Union and Mexico starting Aug. 1. Leaders of the EU and Mexico indicated they intend to keep talking with the Trump administration this month in an attempt to agree on a lower rate.
Trump’s announcement comes ahead of inflation readings this week, which will give investors a better sense of how the Trump tariffs already in effect are being felt throughout the economy.
Eyes are on a slew of earnings reports set to roll out this week. Major banks, including JPMorgan Chase, will deliver quarterly reports starting Tuesday.
Prices for the 10-year treasury fell, raising yields to 4.33% from Friday’s 4.42%. Treasury prices and yields move in opposite directions.
Oil prices sank 33 cents to $68.12 U.S. a barrel.
Gold prices eased higher 90 cents at $3,363.10 U.S. an ounce.
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