Futures tied to Canada’s main stock index dipped on Thursday as investors assessed the implications of an intensifying trade war with the United States.
The TSX Composite Index popped 175.14 points Wednesday to 24,423.34
Futures dipped 0.1% Thursday.
The Canadian dollar edged back 0.11 cents to 69.53 cents U.S. early Thursday.
U.S. President Donald Trump on Wednesday threatened to impose additional tariffs on European Union goods, as major U.S. trading partners vowed to retaliate against the trade barriers already erected by the U.S. president.
Canada, the largest foreign supplier of steel and aluminum to the United States, announced retaliatory tariffs on U.S. imported goods worth $29.8 billion effective on Thursday, in response to Trump’s tariffs on these metals.
Trump’s wavering trade policies have triggered a global trade war, rattling investors, consumers and business confidence, while increasing recession risks for the U.S. as well as for Canada.
Back home, in corporate news, Alimentation Couche-Tard’s founder said the retailer could bolster its $47-billion offer for Seven & I if the Japanese firm became more cooperative and shared its financial information in greater detail.
Just one item on the economic calendar this Thursday. In January, the total value of building permits issued in Canada decreased by $425.8 million (-3.2%) from the previous month to $12.8 billion.
ON BAYSTREET
The TSX Venture Exchange vaulted 12.09 points, or 2%, Wednesday to 613.98.
ON WALLSTREET
Stock futures slipped on Thursday as investors awaited another key inflation report.
Futures for the Dow Jones Industrials sank 132 points, or 0.3%, to 41,261
Futures for the S&P 500 index dropped 24 points, or 0.4%, to 5,580.75
Futures for the tech-heavy NASDAQ capsized 127 points, or 0.4%, to 19,491.50.
Week to date, all three major averages are on pace for steep declines. The S&P 500 and NASDAQ are on track for losses of about 3%. The Dow is off 3.4% in the period, heading for its worst week since March 2023. The broad market index briefly dipped into correction territory on Tuesday, down 10% from a record set in February.
Beleaguered tech stocks caught a bid Wednesday as investors snapped up shares, lifting the S&P 500 higher by 0.5%. The NASDAQ Composite also popped 1.2% thanks to gains from Nvidia and Palantir Technologies. The 30-stock Dow was an outlier, however, notching a third straight losing day and falling 0.2%.
Investors Thursday are awaiting more inflation data in the form of last month’s producer price index.
In Japan, the Nikkei 225 edged lower 0.1% Thursday, while in Hong Kong, the Hang Seng fell 0.6%.
Oil prices slid 72 cents to $67.26 U.S. a barrel.
Gold prices gained $9.90 to $2,956.70 U.S. an ounce.
