Futures Nose Ahead on Tariff News
Futures for Canada's benchmark index edged higher on Monday, with investors assessing the latest delay in U.S. tariff deadline and the possibility of Canada offering financial support to large aluminum producers impacted by the trade war.
On Friday, the TSX Composite Index inched higher 1.9 points to 27,036.18. Last week, the index leaped 344 points, or 1.3%.
September futures were ahead 0.2% Monday.
The Canadian dollar was down 0.33 cents to 73.19 cents U.S.
U.S. President Donald Trump said on Sunday that several trade agreements were close to being finalized and other countries would be notified of higher tariff rates by July 9. Higher rates were set to take effect on August 1, a three-week postponement from the previous deadline.
Meanwhile, Canada is considering financially aiding large aluminum producers like Rio Tinto in case Washington's 50% tariff on imports of the metal persist in the medium term, the CEO of a key industry trade group said on Saturday.
In other news, Prime Minister Mark Carney told the Calgary Herald that a new oil pipeline to the British Columbia coast is very likely to be part of a list of projects considered to be of national importance to Ottawa.
ON BAYSTREET
The TSX Venture Exchange forged ahead 1.14 points to end Friday at 755.22, for a hike on the week of 31 points, or 4.3%.
ON WALLSTREET
Stock futures fell Monday after the U.S. said that tariffs are set to go into effect Aug. 1, not July 9.
Futures for the Dow Jones Industrials dropped off 26 points, or 0.1%, to 45,072.
Futures for the S&P 500 index slid 17.75 points, or 0.3%, to 6,306.50
Futures for the NASDAQ stepped back 94.25 points, or 0.4%, to 22,967.25.
U.S. markets were closed Friday for the 4th of July holiday.
In an interview with reporters Sunday, President Donald Trump and Commerce Secretary Howard Lutnick were asked to clarify when tariffs are set to go into effect. In response, Lutnick said, “Tariffs go into effect Aug. 1. But the president is setting the rates, and the deals, right now.” Trump nodded in approval.
Earlier in the day, Treasury Secretary Scott Bessent said in an interview on CNN’s “State of the Union” that tariffs will return to April 2 levels on Aug. 1 if there is no progress on signing a deal with the U.S.
Investors had been expecting tariff rates to go into effect this week. Trump’s initial 90-day reprieve on the April “reciprocal” tariffs for most U.S. trading partners was set to end Tuesday.
Adding to trade worries, Trump also threatened an additional 10% tariff on countries that align with the “Anti-American policies of BRICS,” which refers to emerging market countries including Brazil, Russia, India and China. Trump did not elaborate on any specific policy of BRICS.
The announcement came as the group met in Rio de Janeiro, Brazil. In recent years, the group has sought to move away from its dependence on the U.S. dollar.
Tesla shares were down more than 6% after CEO Elon Musk said he is launching his own political party.
The party would be called the “America Party” and could focus on “on just two or three Senate seats and eight to 10 House districts.”
In Japan, the Nikkei 225 index retreated 0.6% Monday, while in Hong Kong, the Hang Seng handed back 0.1%
Oil prices did not move from their current perch of $67.00 U.S. a barrel.
Gold prices docked $33.20 to $3,309.70 U.S. an ounce.
