Futures tied to Canada's main stock index rose on Wednesday in the run-up to the Bank of Canada's interest rate decision later in the day, which is expected to result in a quarter-point cut.
The TSX Composite Index slid 132.51 points, Tuesday to 24,248.20
Futures advanced 0.2% Wednesday.
The Canadian dollar captured 0.11 cents to 69.39 cents U.S. early Wednesday.
U.S. President Donald Trump on Tuesday backed off from plans to double the trade duties on Canadian steel and aluminum products, following Ontario province's decision to suspend a 25% surcharge on electricity exports to the U.S. states of Minnesota, Michigan and New York.
The chaos around the implementation of Trump's tariffs has increased the risks of recession for the U.S., Mexico and Canada.
In corporate news, Step Energy Services missed fourth-quarter revenue expectations on Tuesday.
The Bank of Canada is standing by with its latest interest rate decision, the announcement is set for 10 a.m. EDT.
ON BAYSTREET
The TSX Venture Exchange gained 7.05 points, or 1.2%, Tuesday to 601.79.
ON WALLSTREET
Stock futures ticked higher Wednesday as investors awaited new U.S. inflation data, while President Donald Trump’s 25% tariffs on steel and aluminum imports to the U.S. took effect.
Futures for the Dow Jones Industrials spiked 238 points, or 0.8%, to 41.713
Futures for the S&P 500 index took on 45.5 points, or 0.8%, to 5,622.50
Futures for the tech-heavy NASDAQ jumped 187.75 points, or 1%, to 19,586.75.
This week alone, the Dow and S&P 500 have dropped more than 3%, while the NASDAQ has fallen 4%. The S&P 500 briefly dipped into correction territory on Tuesday, down 10% from a record set in February. Over the past month, the S&P 500 has lost nearly 8%, while the Dow and NASDAQ have shed 6.6% and 11.3%, respectively.
The bulk of those declines have been led by major tech names, which have been struggling of late. Tesla is down 17% this week alone, while Nvidia and Meta Platforms are down more than 7% each.
Some of those names rebounded slightly Wednesday in the premarket. Tesla rose 3%, while Nvidia gained 2%. Meta Platforms, Amazon and Alphabet also climbed more than 1%.
After Trump’s steel and aluminum tariffs took effect on Wednesday, the European Union responded swiftly, pledging to impose counter-tariffs on 26 billion euros ($28.33 billion) worth of U.S. imports beginning in April.
Trump said Tuesday he would double import duties on Canadian steel and aluminum imports to 50% as of Wednesday. That move was in response to Ontario’s decision to tack on a 25% levy on electricity exported to the U.S.
Later in the day, Ontario Premier Doug Ford said he would pause the surcharge. White House trade advisor Peter Navarro followed that by telling the media on Tuesday afternoon that Trump would not raise the Canadian steel and aluminum tariffs to 50%. However, the 25% duty on these metals would still go into effect on Wednesday.
In Japan, the Nikkei 225 gained 0.1%, while in Hong Kong, the Hang Seng ditched 0.8%.
Oil prices moved up 80 cents to $67.01 U.S. a barrel.
Gold prices dropped $1.60 to $2,919.30 U.S. an ounce.
