Stocks in Canada’s largest centre opened lower on Wednesday ahead of U.S. President Donald Trump's reciprocal tariff announcement, with investors fearing significant ripple effects on global economic growth.
The TSX Composite Index erased 111.63 points to begin Wednesday at 24,921.65.
The Canadian dollar stepped back 0.02 cents to 69.80 cents U.S.
Trump is set to announce sweeping reciprocal tariffs on global trading partners at 4 p.m. ET in what the White House has dubbed "Liberation Day," threatening to disrupt decades of established trade practices.
The tariffs, which will take effect immediately upon announcement, are expected to trigger price increases and prompt retaliatory measures from affected countries.
Prime Minister Mark Carney’s office said he and Mexican President Claudia Sheinbaum spoke on Tuesday about Canada's plan to "fight unjustified trade actions" by the U.S.
U.S. companies say a "Buy Canadian" movement is already making it harder for their products to reach that country's shelves.
In corporate news, investment firm Brookfield has resumed takeover talks with Spanish pharmaceuticals company Grifols, news website El Confidencial reported on Wednesday.
Brookfield shares docked 95 cents, or 1.2%, to kick off Wednesday at $76.02.
ON BAYSTREET
The TSX Venture Exchange fell 0.84 points to 625.35.
All but one of the 12 TSX subgroups were lower in the first hour, weighed the most by gold, off 1.1%, while materials and telecoms each stumbled 0.9%.
The lone gainer was information technology, ahead 0.3%.
ON WALLSTREET
Stocks dropped Wednesday as Wall Street braced for the expected rollout of President Donald Trump’s tariffs.
The Dow Jones Industrials retreated 78.99 points to 41,910.97
The broader index regained 14.37 points to 5,618.70
The NASDAQ slumped 52.43 points to 17,397.46.
Tesla shares weighed on the broader market, losing about 3% after the company reported disappointing deliveries for the first quarter.
The moves come ahead of the implementation of a raft of Trump’s “reciprocal tariffs” that will “start with all countries.”
Tesla shares weighed on the broader market, losing about 3% after the company reported disappointing deliveries for the first quarter.
The moves come ahead of the implementation of a raft of Trump’s “reciprocal tariffs” that will “start with all countries.”
The White House revealed Tuesday that the levies “will be effective immediately” after being unveiled at an event in the Rose Garden.
Details are still scarce. The administration as of Tuesday had yet to decide on the tariff levels and was still considering several options, according to a report from Bloomberg News
Prices for the 10-year Treasury gained ground, lowering yields to 4.15% from Tuesday’s 4.17%. Treasury prices and yields move in opposite directions.
Oil prices eked up eight cents to $71.28 U.S. a barrel.
Prices for gold brightened $11.50 to $3,157.60 U.S.
