(REPORT UPDATED TO REFLECT CREA STATS FOR MARCH)
Futures for Canada’s main stock index edged higher on Tuesday, buoyed by U.S. President Donald Trump’s hints of possible automotive tariff exemptions.
The TSX Composite Index gained 278.73 points, or 1.2%, to close Monday at 23,866.53.
June futures gained 0.2% Tuesday.
The Canadian dollar poked up 0.01 cents to 72.03 cents U.S.
Trump on Monday suggested potential exemptions for the 25% tariffs on imports of autos and auto parts from Mexico, Canada and other regions.
Oil prices were largely stable after new tariff exemptions and rebounding Chinese oil imports were offset by the IEA following OPEC in reducing its oil demand forecast.
It’s a busy day on the economic front, with consumer price index figures for March rising 2.3% on a year-over-year basis in March, down from a 2.6% increase in February. On a seasonally adjusted monthly basis, the CPI was unchanged in March.
Elsewhere, manufacturing sales rose 0.2% in February, mainly on higher sales of primary metals and chemical products. Meanwhile, sales in the petroleum and coal product subsector declined the most.
Moreover, Canada Mortgage and Housing Corporation housing starts for all areas in Canada decreased 3.3% in March (214,155 units) compared to February (221,405 units). Actual housing starts were down 12.5% year-over-year in centres with a population of 10,000 or greater, with 14,924 units recorded in March, compared to 17,052 in March 2024.
The Canadian Real Estate Association reported national home sales fell 4.8% month-over-month. Actual (not seasonally adjusted) monthly activity came in 9.3% below March 2024.
ON BAYSTREET
The TSX Venture Exchange hiked 12.53 points, or 2%, Monday to 592.24.
ON WALLSTREET
U.S. stock futures were little changed Tuesday after the S&P 500 posted back-to-back winning sessions. Investors also awaited a fresh set of first-quarter earnings reports.
Futures for the Dow Jones Industrials sank 187 points, or 0.5% to 40,555.
Futures for the much broader index dipped 24.5 points, or 0.5%, to 5,416.75
Futures for the NASDAQ Composite fell 75.25 points, or 0.4%, to 18,859.50
The moves came after the major stock indexes ended Monday’s session higher, buoyed by the tech sector. Stocks received a tailwind after guidance on Friday from U.S. Customs and Border Protection revealed exemptions from “reciprocal” tariffs for electronic products such as smartphones, computers and semiconductors. Still, comments from President Donald Trump and Commerce Secretary Howard Lutnick on
Sunday suggested these exemptions might only be temporary. During Monday’s regular session, the Dow gained more than 300 points. The S&P 500 climbed 0.8%, and the NASDAQ Composite added 0.6%.
The corporate earnings season picked up steam, with Johnson & Johnson along with Bank of America reporting earnings. However, some experts say this earnings season may not yet provide investors with the clarity they seek on how companies will be affected by Trump’s new tariff policies.
On Tuesday, investors will also watch out for the latest readings on March’s import and export price indexes.
In Japan, the Nikkei 225 index progressed 0.8% Tuesday, while in Hong Kong, the Hang Seng acquired 0.2%.
Oil prices gave back 55 cents to $60.98 U.S. a barrel.
Gold prices climbed $10.10 to $3,236.40 U.S. an ounce.