TSX Lists Lower in First Hour
Canada's main stock index opened lower on Monday, dragged by losses in heavyweight mining stocks, while investors assessed the latest delay in U.S. tariff deadline.
The TSX Composite Index opened Monday down 2.49 points to 27,033.67.
The Canadian dollar slid 0.02 cents to 73.30 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.
Health-care concerns led the pack of gaining subgroups, with Bausch Health Companies barging ahead 20 cents, or 2.1%, to $9.59.
Financials also were performing well, with Great-West Lifeco grabbing 89 cents, or 1.8%, to $51.10.
ON BAYSTREET
The TSX Venture Exchange backpedaled 3.11 points to begin the new week at 752.11.
Seven of the 12 TSX subgroups were higher in the early going, with health-care soaring 0.7%, while financials obtained 0.5%, and industrials boosted by 0.4%.
The five laggards were weighed most by gold, sinking 1.5%, materials, sliding 1.2%, and real-estate 0.3% less solid.
ON WALLSTREET
Stocks fell Monday as traders weighed the latest developments on the trade front to start the week.
The Dow Jones Industrials docked 171.86 points to 44,656.67.
The S&P 500 index removed 27.34 points to 6,252.01
The NASDAQ Composite stumbled 126.43 points to 20,474.67.
U.S. were closed the latter part of Thursday and all of Friday for the 4th of July long weekend.
Tesla shares also put pressure on the broader market. The EV maker shed 7% after CEO Elon Musk announced his intention over the weekend to form a new political party called the “America Party.” Investors have been less than pleased with the billionaire’s foray into politics this year, which some say have damaged Tesla’s brands and sales.
President Donald Trump and Commerce Secretary Howard Lutnick were also asked on Sunday 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.
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 this week.
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.
Prices for the 10-year treasury were lower, raising yields to 4.37% from Wednesday’s 4.34%. Treasury prices and yields move in opposite directions.
Oil prices recovered 26 cents to $67.26 U.S. a barrel.
Gold prices dipped $19.40 to $3,323.50 U.S. an ounce.
