Canada’s main stock index struggled to find direction on Thursday as escalating global trade tensions fueled risk-aversion, with strong bank earnings failing to boost market sentiment.
The S&P/TSX composite index was down 0.08% at 25,309.9, following three consecutive sessions of gain.
“Markets are going to be in very uncertain territory for some time here,” said Michael Sprung, president at Sprung Investment Management.
“The main thing causing confusion is the worry over tariffs, particularly with respect to Canada and Mexico, but now also with the threatened tariffs on the European Union as well.”
U.S. President Donald Trump proposed a month-long extension on new tariffs for Mexican and Canadian imports, potentially taking effect April 2.
He also suggested a 25% “reciprocal” tariff on European automobiles and other goods.
TSX rises as tech shares advance ahead of Nvidia results
Mining shares led the declines on the TSX, dropping 1.3% as gold prices fell more than 1% to their lowest level in over a week due to a firmer U.S. dollar.
The heavily-weighted financial sector fell 0.5%, despite strong quarterly results from three major Canadian banks.
Shares of Royal Bank of Canada dropped 3.2%, TD Bank shed 0.5% and CIBC gained 0.8%, after each of them beat quarterly profit estimates on Thursday.
The technology sector dipped 0.5%, giving up the gains from the previous session.
Capping overall losses, energy stocks rose more than 1% as oil prices climbed 1.5% after Trump canceled Chevron’s Venezuela operations license, triggering supply concerns.
Utilities provider Superior Plus topped the benchmark index with a 10% rise, after it exceeded quarterly revenue estimates.
Shares of oil producer Veren rose 9% following better-than-expected quarterly results.
Comments
Comments are closed for this article.