TSX Gains Despite Trade Jitters

Canada's main stock index moved higher on Thursday as investors assessed latest U.S. tariff threats and awaited signs of progress on trade talks.

The TSX Composite Index recouped 64.2 points to move into Thursday afternoon at 27,036.52

The Canadian dollar was unchanged at at 73.08 cents U.S.

In company news, Bloomberg News reported Canada Goose's private equity backer, Bain Capital, is considering a sale of its stake in the luxury brand. Canada Goose shares gained 84 cents, or 4.7%, to $18.56.

Consumer discretionary stocks were helped by a rise of $1.16, or 2%, in auto parts manufacturer Magna International's shares to $58.94.

Industrial stocks soared as Air Canada rose 99 cents, or 4.4% to $23.44.

Electronics firm Celestica was down $3.58, or 1.6%, to $216.73, while software company Lightspeed Commerce declined 28 cents, or 1.7%, to $15.97.

Canada is seeking to finalize a free trade deal with Southeast Asian nations as part of an attempt to expand into new markets, Foreign Minister Anita Anand said, as a response to the hefty tariffs imposed by the U.S.

President Donald Trump on Wednesday announced a new 50% tariff on copper, set to go into effect on August 1, and threatened to slap 50% levies on exports from Brazil.

Trump also issued new tariff letters to seven minor trading partners, adding to the 14 others issued earlier in the week.

Canada, which aims to reach a trade deal with Washington by July 21, could impose counter-duties on the U.S. if no agreement is reached.

ON BAYSTREET

The TSX Venture Exchange gained 11.45 points, or 1.5%, to 768.98

Seven of the 12 TSX subgroups were higher, with consumer discretionary and industrial stocks each grabbing 0.8%, while financials were wealthier by 0.6%.

The five laggards were weighed most by energy, stepping back 0.6%, information technology, down 0.4%, and health-care, doffing 0.3%.

ON WALLSTREET

The Dow Jones Industrial Average rose on Thursday as traders shook off the tariff tumult.

The 30-stock index popped 205.58 points to break for lunch Thursday at 44,663.88.

The S&P 500 edged higher 14.59 points to 6,277.85.

The NASDAQ Composite dipped 3.05 points to 20,608.29.

Shares of Estée Lauder were trading 6% higher on Thursday, after Bank of America reinstated coverage of the stock at a buy rating.

The moves came after President Donald Trump said late Wednesday that a 50% U.S. tariff on imported copper will take effect Aug. 1.

Trump also announced a 50% tariff on Brazil partly in retaliation for the current trial against former Brazilian President Jair Bolsonaro for his role in an alleged attempt to overturn the country’s 2022 election results.

The move was also due to the “very unfair trade relationship” with Brazil, Trump added, saying it has been “far from Reciprocal.”

Brazilian President Luiz Inacio Lula da Silva later said that the country would respond to the 50% levy in accordance with its economic reciprocity law.

Prior to the president’s announcement of levies on Brazil, he sent letters that dictated new U.S. rates on the imports of at least seven additional countries. He had also sent letters laying out new rates earlier this week to the leaders of 14 other countries, such as Japan and South Korea. The duties are set to take effect Aug. 1.

Prices for the 10-year treasury fell, raising yields to 4.37% from Wednesday’s 4.34%. Treasury prices and yields move in opposite directions.

Oil prices slid $1.52 to $66.86 U.S. a barrel.

Gold prices gained $7.70 at $3,328.70 U.S. an ounce.