Modernist Podcast - Promo

Stocks Take Bumps, Bruises from Proposed Trade Policy



Stocks in Canada’s largest centre fell on Tuesday, hurt by energy shares, as U.S. President-elect Donald Trump’s pledge to impose big tariffs on top U.S. trading partners, including Canada, weighed on investor sentiment.

The TSX remained negative 93.31 points to venture near noon EST Tuesday at 25,317.04

The Canadian dollar was up 0.06 cents at 71.02 cents U.S.

Trump on Monday said he would impose a 25% tariff on imports from Canada and Mexico until the countries clamped down on drugs, particularly fentanyl, and migrants crossing the border.

The proposed measures could also violate the terms of a free-trade deal among the United States, Mexico and Canada.

Trump separately outlined “an additional 10% tariff, above any additional tariffs” on imports from China.

In corporate news, Financial Times reports Canaccord Genuity is working with bankers to review its British wealth management business, with potential outcomes ranging from a sale to bringing in another investor. Canaccord shares slid five cents to $10.53.

Elsewhere, Alimentation Couche-Tard said it would continue to pursue a deal with Japan’s Seven & i.

The company, whose shares gained 56 cents to $78.38, reported third-quarter earnings below estimates on Monday.

ON BAYSTREET

The TSX Venture Exchange recovered 0.25 points to 603.18

All but three of the 12 subgroups were lower, weighed most by energy, down 1.6%, consumer discretionary stocks, falling 1.3%, and real-estate, weaker by 1.2%.

The three gainers proved to be information technology, up 1%, gold, brighter 0.7%, and consumer staples, ahead 0.3%.

ON WALLSTREET

The S&P 500 rose slightly on Tuesday as investors assessed the threat of new tariffs from President-elect Donald Trump.

The Dow Jones Industrial index ditched 148.2 points to 44,588.37.

The much-broader index moved forward 22.54 points to 6,009.91.

The NASDAQ Composite gained 100.47 points to 19,155.31.

Trump on Monday night called for a 25% tariff on products from Mexico and Canada, as well as an additional 10% levy on Chinese goods. He has already said he would impose a tariff of up to 20% on all imports, and an additional duty of at least 60% on products from China.

To be sure, Wall Street appeared to be taking the news in stride.

While stocks were mixed, some individual names and funds moved as investors analyzed potential impacts from the policies Trump discussed. Automakers Ford gave back 1% and General Motors slid more than 7%.

Investors will monitor Federal Reserve meeting minutes due out at 2 p.m. ET for insights into the path of monetary policy.

Prices for the 10-year Treasury eased back, raising yields to 4.31% from Monday’s 4.26%. Treasury prices and yields move in opposite directions.

Oil prices recouped 44 cents to $69.38 U.S. a barrel.

Prices for gold perked $9.20 an ounce to $2,627.80 U.S.



Source link

About The Author

Scroll to Top