Equity markets in Toronto took a small step backward Tuesday, as gains made recently by resource stocks turned the other way. Investors seemed spooked by the reality of tariffs from south of the border.
The TSX waned 27.03 points to close Tuesday
at 25,631.83
The Canadian dollar gained 0.24 cents at 70. cents U.S.
U.S. President Donald Trump raised tariffs on steel and aluminum imports on Monday to a flat 25% without exceptions, aiming to support U.S. industries but risking trade conflicts. The new duties take effect on March 4, a White House official confirmed.
Trump has also promised to announce global reciprocal tariffs within days.
Prime Minister Justin Trudeau called the latest tariffs “unacceptable” and stated that Canada would firmly respond if necessary.
In corporate news, cinema chain Cineplex missed fourth-quarter revenue estimates. Cineplex stock dropped 22 cents, or 2%, to $10.66.
Shopify leaped $5.02. or 2.9%, to $176.57, despite a downbeat first-quarter profit outlook spooked investors, despite strong holiday-quarter sales.
Material and gold issues took the hardest hits, with Ero Copper down $1.25, or 6.3%, to $18.63 while Hudbay Minerals finished off 78 cents, or 5.7%, to $12.93.
Lundin Gold declined $1.68, or 4.1%, to $39.20, while Centerra Gold let go of 42 cents, or 4.2%, to $9.48.
In real-estate, Northwest Health-care REIT units dipped 15 cents, or 3.2%, to $4.59, while units of Granite REIT surrendered $1.44, or 2.1%. to $68.67.
Telecoms tried to even things up, with BCE gaining 48 cents, or 1.5%, to $32.69, while Rogers surged 59 cents, or 1.5%, to $39.14.
In consumer discretionary plays, Linamar took on 54 cents, or 1%, to $53.84, while Aritzia gained 65 cents to $72.04.
Energy stocks also broke even and more, with Imperial Oil charging $3.34, or 3.4%, to $101.52, while those for Suncor jumped $1.48, or 2.6%, to $58.05.
On the economic calendar, Statistics Canada reported building permits rose 11% to $13.1 billion in December.
ON BAYSTREET
The TSX Venture Exchange dropped 8.48 points, or 1.3%, to 634.54
All but three of the 12 subgroups were lower, weighed most by materials stocks, lurching 1.6%, while gold lost 1.5%, and real-estate was off 1%.
The three gainers proved to be energy, sprinting 1.2%, telecoms, ahead 0.5%, and consumer discretionary stocks, up 0.2%.
ON WALLSTREET
Stocks were little changed on Tuesday as investors digested cautious commentary from Federal Reserve Chairman Jerome Powell on interest rates. Concerns remain over the direction of the economy amid U.S. tariffs and the possible escalation of a global trade war.
The Dow Jones Industrials climbed 123.18 points, to 44,593.59
The S&P 500 edged forward 2.07 points to 6,068.51
The tech-heavy NASDAQ dipped 70.41 points to 19,643.86
Apple gained more than 2.5% after The Information reported that the company is partnering with Alibaba to develop AI features for iPhone users in China, curbing the market’s losses.
Powell earlier addressed the Senate Banking Committee and signaled the Fed does not need to move quickly to ease monetary policy.
Powell’s testimony — which will be followed by his appearance before the House Financial Services Committee on Wednesday — comes at a volatile time in Washington with President Donald Trump favoring tariffs against U.S. trading partners and with mixed messages coming from the administration on its approach to the Fed.
Trump on Monday signed new tariffs on all steel and aluminum imports to the U.S. The European Union responded by saying it would retaliate with levies of its own if the U.S. tacks on tariffs against products from the country bloc.
its own if the U.S. tacks on tariffs against products from the country bloc.
Investors are looking ahead to fresh inflation data in the form of the latest consumer price index report due out Wednesday, while the producer price index will go out on Thursday.
Prices for the 10-year Treasury retreated slightly, raising yields to 4.54% from Monday’s 4.50%. Treasury prices and yields move in opposite directions.
Oil prices tacked on 92 cents to $73.24 U.S. a barrel.
Prices for gold tailed off $6.90 an ounce to $2,927.50 U.S.
