Equities north of the border enjoyed the sunshine before the fallout from more tariff kicked in and turned everything negative Tuesday. This, as more and greater tariffs – primarily on China – made their presence felt.
The TSX Composite Index continued on the downside Tuesday, 352.56 points, or 1.5%, to close Tuesday at 22,506.90.
The Canadian dollar slid 0.05 cents to 70.19 cents U.S.
U.S. President Donald Trump said on Monday he would talk to China, Japan and other countries over the tariffs, but was not looking at a pause on the duties.
This came after Trump threatened to impose an additional 50% tariff on China if Beijing does not withdraw its retaliatory tariffs on the United States. Beijing said on Tuesday it will never accept the “blackmail nature” of U.S. tariff threats.
Shares of Canadian gold miners could get support as bullion prices drifted higher, aided by the global trade tensions, and a softer dollar.
In particular, Barrick Gold’s Reko Diq project in Pakistan reportedly aims to secure over $2 billion in financing from international lenders.
Shares in the world’s biggest gold company tilted lower 14 cents, or 1.9%, to $24.98.
Among techs, Shopify sank $2.47, or 2.2%, to $109.84, while Celestica reversed $2.13, or 2.1%, to $98.05.
Health-care stocks were pummeled, primarily Tilray, off 16 cents, or 19.8%, to 65 cents, while Bausch Health Companies ditched 64 cents, or 8.6%, to $6.82.
Among energy stocks, Vermilion Energy let go of 95 cents, or 11%, to $7.70, while Baytex Energy dipped 23 cents, or 9.9%, to $2.09.
Communication shares dropped, with BCE leading the declines, down $1.72, or 5.5%, to $29.77, while Rogers declined $1.12, or 3.2%, to $34.11.
The IVEY School of Business reported its PMI figures tumbled to 51.3 in March, well off from a February level of 55.3, and from 57.5 in March 2024.
ON BAYSTREET
The TSX Venture Exchange shed 5.66 points, or 1%, to 561.76
All 12 TSX subgroups were losers, as health-care caved 8%, energy proved 5.4% less energetic, and telecoms tailed off 3.3%.
ON WALLSTREET
What was a massive rally on Wall Street has turned into yet another sizeable decline.
Cheap stocks and hope for signs of trade negotiation sent markets surging Tuesday morning — but that relief rally evaporated as the White House said it would levy enormous tariffs on China.
The Dow Jones Industrials fell 320.01 points to conclude Tuesday at 37,645.59. Apple led the losses with the iPhone maker’s costs set to surge with new China tariffs.
The S&P 500 index dipped 79.48 points, or 1.6%, to 4,982.77, and was inches away from closing in a bear market with it down more than 19% from its February record.
The NASDAQ gave up earlier gains and dropped 335.35 points, or 2.2%, to 15,267.91. The three major averages had been on track for their best session since Nov. 2022.
Markets fell because President Donald Trump is set to impose an additional 84% in levies across all Chinese imports on Wednesday, White House Press Secretary Karoline Leavitt announced Tuesday. That will mean all goods from the country are subject to a tariff of at least 104%.
China’s Commerce Ministry on Tuesday said the country would “fight to the end” of the trade war and would continue to stand up to Trump.
Tuesday marks a fourth session of violent market volatility since the rollout of Trump’s tariffs.
Prices for the 10-year Treasury skidded, hiking yields to 4.28% from Monday’s 4.22%. Treasury prices and yields move in opposite directions.
Oil prices weakened $2.16 to $58.54 U.S. a barrel.
Prices for gold leaped $26.90 to $3,000.50 U.S.