Futures tied to Canada’s main stock index declined on Thursday as trade tensions lingered despite some reprieve on U.S. tariffs.
The TSX Composite Index rocketed 298.83 points, or 1.2%, to conclude Wednesday at 24,870.82
March futures were down 1% Thursday.
The Canadian dollar handed over 0.09 cents to 69.65 cents U.S. early Thursday.
U.S. President Donald Trump on Wednesday exempted automakers from his stringent tariffs on Canada and Mexico for one month, as long as the companies complied with the terms of an existing free-trade agreement.
However, Trump made it clear that he was not calling off his 25% tariffs on Canadian and Mexican imports, pressing the two countries to deter fentanyl smuggling.
In corporate news, oil and gas company Canadian Natural Resources posted a fall in fourth-quarter profit as weaker commodity prices overshadowed a rise in production.
On the economic beat, Canada’s merchandise exports increased 5.5% while imports were up 2.3%. Canada’s merchandise trade surplus with the world widened from a revised $1.7 billion in December to $4.0 billion in January. This was the largest surplus since May 2022, according to Statistics Canada.
Also, the IVEY PMI for February was due for release later this morning (about 10 a.m. EST).
ON BAYSTREET
The TSX Venture Exchange shot higher 13.68 points, or 1.2%, to close Wednesday at 607.75
ON WALLSTREET
Stock futures were under pressure Thursday as investors sought out more clarity on the latest U.S. tariff measures.
Futures for the Dow Jones Industrials dumped 479 points, or 1.1%, to 42,587.
Futures for the S&P 500 index lost 80 points, or 1.4%, to 5,771.25
Futures for the tech-heavy NASDAQ slumped 359 points, or 1.7%, to 20,306.
U.S. tariffs on Canadian, Mexican and Chinese imports took effect this week, rocking financial markets. Canada and China responded with retaliatory levies of its own, while Mexico said it would unveil measures over the weekend.
The major averages have lost more than 1% this week as trade tensions escalate. But the benchmarks got a boost Wednesday after the White House said it would grant a one-month delay for tariffs on automakers whose cars comply with the United States-Mexico-Canada Agreement.
This development fueled traders’ hopes that Trump could provide further exemptions. Yet some on Wall Street questioned the effectiveness of these exceptions.
A continued unwind of the popular artificial intelligence trade that has boosted the market for more than a year also hurt Thursday’s premarket.
Notably, chipmaker Marvell Technology dropped more than 16% after the company issued mixed first-quarter guidance. Other semiconductor builders such as ON Semiconductor, Taiwan Semiconductor and Nvidia also slid before the bell.
On top of that, a string of recent economic reports raised alarm that Trump’s policies could hinder the U.S. economy. Those came ahead of Friday’s closely watched jobs report.
In Japan, the Nikkei 225 added 0.8%, while in Hong Kong, the Hang Seng popped 3.3%.
Oil prices pointed up 34 cents to $66.65 U.S. a barrel.
Gold prices ditched $15.50 to $2,910.50 U.S. an ounce.
