Canada's main stock index fell on Tuesday, dragged by mining shares following new U.S. tariffs on steel and aluminum, while Shopify's dour profit outlook weighed on technology shares.
The TSX came off its lows of the morning, but still trailed breakeven by 2.24 points to move into Tuesday afternoon at 25,656.62.
The Canadian dollar gained 0.14 cents at 69.88 cents U.S.
U.S. President Donald Trump raised tariffs on steel and aluminum imports on Monday to a flat 25% without exceptions, aiming to support U.S. industries but risking trade conflicts. The new duties take effect on March 4, a White House official confirmed.
Trump has also promised to announce global reciprocal tariffs within days.
Prime Minister Justin Trudeau called the latest tariffs "unacceptable" and stated that Canada would firmly respond if necessary.
In corporate news, cinema chain Cineplex missed fourth-quarter revenue estimates. Cineplex stock was up 29 cents, or 2.7%, midday to $10.59.
Shopify jumped $1.81. or 1.1%, despite a downbeat first-quarter profit outlook spooked investors, despite strong holiday-quarter sales.
On the economic calendar, Statistics Canada reported building permits rose 11% to $13.1 billion in December.
ON BAYSTREET
The TSX Venture Exchange lost 5.77 points to 637.17
ON WALLSTREET
Stocks were little changed on Tuesday as investors digested cautious commentary from Federal Reserve Chairman Jerome Powell on interest rates. Concerns remain over the direction of the economy amid U.S. tariffs and the possible escalation of a global trade war.
The Dow Jones Industrials moved into the green 55.95 points, to 44,526.36
The S&P 500 slid 0.63 points to 6,065.81
The tech-heavy NASDAQ dipped 27.81 points to 19,685.69
Apple gained more than 2.5% on a report that the company is partnering with Alibaba to develop AI features for iPhone users in China, curbing the market’s losses. Coca-Cola also jumped about 3% on a strong earnings report.
Powell earlier addressed the Senate Banking Committee and signaled the Fed does not need to move quickly to ease monetary policy.
Trump on Monday signed new tariffs on all steel and aluminum imports to the U.S. The European Union responded by saying it would retaliate with levies of its own if the U.S. tacks on tariffs against products from the country bloc.
Prices for the 10-year Treasury retreated slightly, raising yields to 4.53% from Monday’s 4.50%. Treasury prices and yields move in opposite directions.
Oil prices tacked on 71 cents to $73.03 U.S. a barrel.
Prices for gold tailed off $3.50 an ounce to $2,930.90 U.S.
