Futures for Canada’s main stock index fell sharply on Monday, part of a global market selloff after U.S. President Donald Trump announced tariffs on Canada, Mexico and China, starting on Tuesday.
The TSX hurtled into the red 391.61 points, or 1.5%, to begin Monday at 25,141.49
The Canadian dollar recovered 0.16 cents at 68.12 cents U.S.
Trump slapped a 25% import tariff on all Canadian goods except energy products, which will carry a levy of 10%.
Prime Minister Justin Trudeau immediately announced retaliatory tariffs on $155 billion of U.S. goods.
Those on $30 billion worth of goods will take effect on Tuesday, the same day as most of Trump’s tariffs, and duties on the remaining will take effect in 21 days, Trudeau said.
In corporate news, Brookfield Asset Management announced that it has completed the acquisition of electric heat trace systems maker Chemelex from nVent Electric Plc for $1.7 billion. Brookfield erased $2.49, or 2.9%, to $84.49.
On the economic beat, the S&P Global Canada Manufacturing Purchasing Managers’ Index (PMI) fell to 51.6 in January from 52.2 in December. Still, it was the fifth straight month above the 50.0 no-change mark. A reading above 50 indicates expansion in the sector.
ON BAYSTREET
The TSX Venture Exchange skidded 4.18 points to 623.75, restricting gains for the week to 2.5 points, or 0.4%.
All but two of the 12 subgroups were in the red in the first hour, weighed most by health-care and consumer discretionary stocks, each settling 2.8%, and industrials, off 2.6%.
The lone gainers were gold, up 3% and materials, ahead 1,3%,
ON WALLSTREET
U.S. stocks rapidly made back ground after Mexico’s president said tariffs against the country would be paused.
Stocks initially dropped Monday after Preside
The Dow Jones Industrials 198.5 points to 44,345.58.
The S&P 500 slumped 54.58 points, or 1.7%, to 5,964.25
The NASDAQ fell 420 points, or 2%, to 21,169.25.
Stocks initially dropped Monday after President Donald Trump hit several key U.S. trading partners with tariffs over the weekend, raising fears that a full-blown trade war would disrupt global supply chains, reignite inflation and slow the economy. But gains were rapidly dissolving amid comments from Mexico President Claudia Sheinbaum.
Trump on Saturday slapped a 25% tariff on goods from Mexico and Canada; energy imports from Canada will have a 10% tariff. Trump also placed a 10% levy on imports from China. Trump also signaled over the weekend that tariffs on the European Union would be imposed next.
U.S. automakers with big North American supply chains led the decline, with General Motors shares off by 5% and Ford down by 4%. Auto suppliers including Aptiv and Avery Dennison lost 8% and 2%, respectively. Engine maker Cummins lost 2%.
Constellation Brands, a large importer of alcohol from Mexico, tumbled 4%. Shares of Chipotle, which imports avocados from Mexico, lost 2%. Nike was down 4%, while fellow clothing maker Lululemon shed 3%.
Prices for the 10-year Treasury gained ground, lowering yields to 4.52% from Friday’s 4.52%. Treasury prices and yields move in opposite directions.
Oil prices nicked higher two cents to $72.55 U.S. a barrel.
Prices for gold recaptured $19.00 an ounce to $2,854 U.S.
