Markets Report Solid, Unspectacular Gains as Tariff Positions Clarified
Equities in Canada’s largest centre mimicked the big gains of their American cousins, following new developments on the tariff and trade front involving U.S. President Donald Trump. But the gains that defied gravity in the morning tailed off a bit by the closing bell, though tech and financial concerns did well.
The TSX Composite Index held onto 166.7 points worth of gains to close Wednesday at 24,472.68.
The Canadian dollar turfed 0.21 cents to 72 cents U.S.
Trump said he wanted to reach a deal with China where tariffs would not be anywhere near 145%, adding that he would set the terms of a deal if Beijing did not enter talks. He also backed off on his threat to fire Federal Reserve Chair Jerome Powell before the latter's term expires next year.
In Canada, Trump's tariff threats and annexation rhetoric have united two main election candidates in a rare consensus as both pledge to fast-track energy projects reducing U.S. export dependence ahead of the April 28 vote.
In individual stock news, Rogers Communication reported first-quarter profit and revenue below analyst estimates. Rogers shares said goodbye to morning gains and finished lower by 28 cents to $34.84.
E-commerce giant Shopify galloped $7.81, or 6.6%, to $126.29, while shares in Sangoma Technologies took on 61 cents, or 9.2%, to $7.22.
Financials also had a good day for themselves, with shares in goeasy Ltd. hurtling higher $8.81, or 6.1%, to $153.44, while Trisura Group gained $1.06, or 3.1%, to $35.69.
In the industrial sector, ATS Corp. hiked $1.42, or 4.3%, to $34.57, while Bombardier jumped $3.50, or 4.2%, to $87.52.
Gold and materials were roughed up, though, as Iamgold lost 51 cents, or 4.8%, to $10.06, while Barrick Gold dipped $1.12, or 4.1%, to $26.50.
G Mining dropped 83 cents, or 4.1%, to $19.07, while Triple Flag sank $1.18, or 3.9%, to $29.35.
Energy suffered as well, with Baytex Energy down six cents, or 2.6%, to $2.28, while Paramount Resources fell 33 cents, or 1.9%, to $16.33.
On the economic agenda, Statistics Canada’s new housing price was flat in March, on a month-to -month basis, compared with a 0.1% rise in the prior-year month.
ON BAYSTREET
The TSX Venture Exchange regained 4.03 points to 635.43.
Seven of the 12 subgroups were lower, with gold trailing 2.4%, while materials and energy docked 1% each.
The five gainers were led by information technology, racing 3.3%, while financials, and industrials each tacked on 0.8%.
ON WALLSTREET
Stocks surged on Wednesday on hopes that U.S.-China trade tensions could soon ease, while President Donald Trump signaled he doesn’t plan to remove Federal Reserve Chairman Jerome Powell from his post as central bank leader.
The Dow Jones Industrials gained 418.54 points, or 1.1%, to 39,605.52.
The S&P index climbed 87.99 points, or 1.7%, to 5,375.82
The NASDAQ Composite climbed 407.63 points, or 2.5%, to 16,708.05.
Trump said Tuesday he’s willing to take a less confrontational approach to trade talks with China, noting that the current 145% tariff on Chinese imports is “very high, and it won’t be that high. ... No, it won’t be anywhere near that high. It’ll come down substantially. But it won’t be zero.”
The Wall Street Journal then reported Wednesday, citing a White House official, that the administration was considering reducing China tariffs to between 50% and 65%. The report sent the U.S. benchmarks to session highs. A White House official later told reporters that such a move would have to be bilateral, however, with China lowering trade barriers as well.
Shares of Tesla popped 5% also due to easing tariff pressures and after CEO Elon Musk said during the company’s Tuesday earnings call that his time spent running Trump’s Department of Government Efficiency will drop “significantly” starting next month.
Investors also breathed a sigh of relief as Trump also said that he has “no intention” of firing Powell, whose term as Fed chair will end in May 2026. The comment is a reversal of sorts for the president, who fired off barbs against Powell as recently as Monday, calling the central bank leader a “major loser” and demanding that interest rates come down. Just last week, Trump said in a Truth Social post that Powell’s “termination cannot come fast enough.”
Prices for the 10-year Treasury remained higher midday Wednesday, lowering yields to 4.38% from Tuesday’s 4.41%. Treasury prices and yields in opposite directions.
Oil prices stumbled $1.42 to $62.25 U.S. a barrel.
Prices for gold skidded $113.90 to $3,300.80 U.S.
