TSX Futures Edge Higher Despite New US Tariffs

The S&P/TSX Composite Index edged lower to trade around the 36,500 mark on Monday after trade talks between the US and Canada collapsed. Canadian Prime Minister Carney said he would match US tariffs after the US imposed 50% tariffs on selected Canadian goods on Saturday. The new duties include furniture, plastics, plywood and electrical equipment, adding to existing tariffs on steel, lumber and autos. Manufacturers traded lower, with Magna International losing nearly 4% and both BRP and Linamar down nearly 1.5%. Meanwhile, financials traded mostly lower amid uncertainty surrounding imminent US sanctions against Iran. The measures could further restrict Iranian oil flows and push oil prices higher, creating renewed inflationary pressures. RBC, TD Bank and other major banks shed nearly 1% ahead of earnings reports this week. Losses were partially offset by gains in mining shares as gold prices rose. Agnico Eagle, Barrick and WPM added about 2%.

Futures tracking Canada’s stock market edged higher on Monday even though trade talks between the US and Canada collapsed. Canadian Prime Minister Carny stated he would match US tariffs after the US imposed 50% tariffs on selected Canadian goods on Saturday . The new duties include furniture, plastics, plywood and electrical equipment, adding to existing tariffs on steel, lumber and autos. Still, equities rose as gold prices rose lent support to mining shares, which were set to extend a recent rally. Meanwhile, oil prices slipped as investors took profits after a sharp weekly rally, offering some respite to financials and broader markets that have been under pressure from energy-driven inflation concerns.

The S&P/TSX Composite Index rose 0.7% to close at 36,620 on Friday, supported by gains in mining and banking stocks. Gold prices held onto their gains after the US signaled it would increase Treasury note and bond buybacks in the secondary market. Agnico Eagle gained 2.3%, Barrick rose 2.9%, and WPM jumped 4.9%. Financials also traded mostly higher following weaker-than-expected retail sales data, as softer consumer spending reinforced expectations that the Bank of Canada will keep interest rates unchanged next week. BMO gained 0.6%, while Scotiabank added 1%. Fairfax Financial (+0.2%), a frontrunner to acquire the Indian government’s stake in IDBI Bank, is set to be given up to two years to consolidate its Indian banking holdings, potentially easing the acquisition process. Retailers traded mostly lower, with ARD down 0.4%, Loblaw shedding 0.7%, and Dollarama losing 0.5%.