Canada's main stock index fell sharply on Thursday as uncertainties about a trade war dented investor sentiment, even after U.S. President Donald Trump gave automakers a one-month exemption from his 25% tariffs on Canadian and Mexican imports.
The TSX Composite Index fell 286.78 points, pr 1.2%. to conclude Thursday at 24,584.04
The Canadian dollar edged ahead 0.14 cents to 69.87 cents U.S.
U.S. President Donald Trump on Wednesday exempted automakers from his stringent tariffs on Canada and Mexico for one month, as long as the companies complied with the terms of an existing free-trade agreement.
However, Trump made it clear that he was not calling off his 25% tariffs on Canadian and Mexican imports, pressing the two countries to deter fentanyl smuggling.
In corporate news, oil and gas company Canadian Natural Resources posted a fall in fourth-quarter profit as weaker commodity prices overshadowed a rise in production. Natural Resources shares took on 54 cents, or 1.4%, to $39.95.
Elsewhere, shares of Aecon Group lost $3.58, or 16.7%, to $18.69, after the construction company missed fourth-quarter revenue expectations.
Tech shares got tagged the worst, Celestica taking it on the chin $13.54, or 10.4%, to $116.84, while Descartes swooned $13.67, or 8.6%, to $145.34.
In health concerns, Tilray stumbled seven cents, or 6.7%, to 97 cents, while Chartwell Retirement Residences dished off 35 cents, or 2%, to $16.98.
In utilities, Transalta shed 68 cents, or 4.8%, to $13.41, while Brookfield Infra Partners dumped $1.97, or 4.6%, to $41.33.
Consumer staples tried to even things out, with Alimentation Couche-Tard advancing $2.75, or 3.9%, to $74.06, while George Weston picked up $4.64, or 2%, to $238.01.
In telecoms, BCE gained a dollar, or 2.9%, to $35.02, while Telus captured 30 cents, or 1.4%, to $22.36.
On the economic beat, Canada's merchandise exports increased 5.5% while imports were up 2.3%. Canada's merchandise trade surplus with the world widened from a revised $1.7 billion in December to $4.0 billion in January. This was the largest surplus since May 2022, according to Statistics Canada.
Also, the IVEY PMI for February sprang to 55.3 from 47.1 in January and from 53.9 in February 2024.
ON BAYSTREET
The TSX Venture Exchange dipped 2.51 points to 605.24
Eight of the 12 TSX subgroups were in the minus region, weighed most by information technology’s 3.3% decline, while health-care dropped 2.2%, and utilities lost 1.9%.
The four gainers were led by consumer staples, up 1.7%, while telecoms captured 1.3%, and energy surged 0.6%.
ON WALLSTREET
Stocks resumed their steep pullback on Thursday as the latest concessions from the White House on President Donald Trump’s controversial tariff policies failed to calm rattled investors.
The Dow Jones Industrials finished lower by 427.82 points, or 1%, to 42,578.77
The S&P 500 index settled 104.12 points, or 1.8%, to 5,738.51
The NASDAQ Composite backpedaled 438.48 points, or 2.6%, to 18,169.26.
Stocks resumed their steep pullback on Thursday as the latest concessions from the White House on President Donald Trump’s controversial tariff policies failed to calm rattled investors.
Thursday marked a return to selling after the White House’s announcement of a one-month delay for tariffs on automakers that sell cars that comply with the United States-Mexico-Canada Agreement spurred a recovery rally on Wednesday. That gave hope to investors expecting the levies to be further walked back, in turn mitigating the expected hit to the U.S. economy.
Concerns mounted on Thursday afternoon after Treasury Secretary Scott Bessent argued in favor of tariffs, leaving investors questioning how far the White House would be willing to go in making compromises on the embattled policy over the long term. Investors appeared fatigued by the barrage of statements from administration members and changes to tariff policy in recent days.
Bessent also described Prime Minister Justin Trudeau as a “numbskull,” while saying the administration was focused more on Main Street than Wall Street. The S&P 500 hit its lowest point since early November in the session.
Prices for the 10-year Treasury edged lower, lifting yields to 4.29% from Wednesday’s 4.28%. Treasury prices and yields move in opposite directions.
Oil prices eased four cents to $66.27 U.S. a barrel.
Prices for gold declined 10 cents an ounce to $2,925.90 U.S.
