Futures tied to Canada's main stock index fell on Monday as investors shunned risky assets amid concerns that U.S. President Donald Trump's upcoming tariffs will hurt the global economy.
The TSX Composite Index hesitated 401.91, or 1.6%, to close Friday and the week at 24,759.15. The index capsized 210 points last week, or 0.8%.
June futures were down 0.5% Monday.
The Canadian dollar backed off 0.19 cents to 69.68 cents U.S.
Stocks across the world plunged after Trump said on Sunday that reciprocal tariffs he is expected to announce on Wednesday will include all nations, and not just a select group of 10 to 15 countries with the biggest trade imbalances.
While Canada had secured protections against new U.S. auto tariffs, including a 60-day delay and annual duty-free quotas, under a 2018 trade agreement with the U.S. and Mexico, there's no evidence Trump will honor those commitments.
The Canadian government said it fully expects the U.S. to honor the agreements on Wednesday.
In corporate news, consulting services firm CGI entered into an agreement to acquire Apside, a digital and engineering services firm in France.
ON BAYSTREET
The TSX Venture Exchange was wounded 4.36 points to 636.06. The index dropped 5.4 points last week, or 0.8%.
ON WALLSTREET
U.S. stock futures fell Monday as traders looked ahead to “Liberation Day” for clarity on President Donald Trump’s tariff plans.
Futures for the Dow Jones Industrials slumped 276 points, or 0.7%, to 41,575
Futures for the S&P 500 index dropped 59.75 points, or 1.1%, to 5,863.25.
Futures for the tech-heavy NASDAQ declined 285.25 points, or 1.5%, to 19,171.75.
Investors were in a risk-off mood again early Monday, selling the tech bull market winners like Nvidia, Tesla and Meta.
A slew of tariffs previously announced by the Trump administration will go into effect on Wednesday — what Trump has called “Liberation Day” — including a 25% levy on “all cars that are not made in the United States.”
The president is also expected to announce his plan for reciprocal duties aimed at countries that impose tariffs on U.S. imports.
Uncertainty surrounding tariffs has weighed on equities, dragging stocks lower on Friday to end the last full trading week of March. Trump did little to assuage fears over the weekend, with The Wall Street Journal reporting Sunday that the president had in recent days pushed his advisors to get more aggressive when it comes to tariffs.
In a Saturday interview with NBC News, Trump said that he “couldn’t care less” if foreign automakers raise their prices due to these new tariffs.
Auto stocks were lower on Monday. Ford Motor and General Motors were down around 1% in the premarket, while Stellantis shed nearly 3%.
On top of that, Trump said the levies will target all countries rather than a small group with trade imbalances with the U.S. Worry over U.S. trade policy has kept expectations for Wall Street’s gross domestic product growth outlook while also stoking concern about stagflation conditions.
In Japan, the Nikkei 225 index tumbled 4.1% Monday, while in Hong Kong, the Hang Seng 1.3%
Oil prices gained 27 cents to $69.63 U.S. a barrel.
Gold prices jumped $36.40 to $3,150.70 U.S. an ounce.
