Stocks on both sides of the border suffered the fallout from U.S. President Donald Trump’s scathing denunciation of his chief banker. The lack of confidence exhibited by the White House shook markets in both countries.
The TSX Composite Index came off its lows of the day Monday, but still finished negative 183.95 points to 24,008.86.
The Canadian dollar added 0.05 cents to 72.27 cents U.S.
The Canadian market tracked a decline in Wall Street’s main indexes, as the Trump administration’s statement about considering options to fire Federal Reserve Director Jerome Powell, a day after the President’s criticism, fueled concerns about the central bank’s autonomy.
China on Monday accused Washington of abusing tariffs, and its warning to other countries followed a report that U.S. President Donald Trump’s administration was pressuring countries to curb trade with the world’s second-largest economy.
The Canadian stock market also takes cues from Wall Street, where index futures down after Trump’s scathing attack against Federal Reserve Chair Jerome Powell sparked worries about the central bank’s independence.
At home, Canada enters the final week of election campaigning before voters head to poll on April 28.
Prime Minister Mark Carney’s campaign platform plans released on Saturday include tax cuts and new spending on infrastructure and defence, as he pledges a new economic order that is less reliant on the U.S.
Among sectors, Canadian gold mining companies could get support from the yellow metal hitting record highs, buoyed by safe-haven flows.
Health-care stocks led the decline, with Bausch Health Companies down 56 cents, or 7.9%, to $6.51, while Tilray lost a penny, or 1.6%, to 61 cents.
Tech issues also weighed, primarily Celestica, which handed back $4.88, or 4.2%, to $111.48, while Sylogist dipped 37 cents, or 4.4%, to $8.14.
Real-estate also sank, with units of Granite REIT off $2.67, or 4.2%, to $60.51, while H&R REIT slipped 34 cents, or 3.5%, to $9.49.
Consumer staples did their best to liven things up, with Metro shares picking up $1.68, or 1.7%, to $103.76, while Saputo shares tacked on 27 cents, or 1%, to $26.45.
Gold was stronger, as Torex Gold Resources climbed $1.37, or 2.9%, to $48.61, while NovaGold was better by 19 cents, or 4.6%, to $4.31.
In telecoms, Quebecor heightened 73 cents, or 2%, to $36.86, while BCE grabbed 52 cents, or 1.7%, to $30.99.
ON BAYSTREET
The TSX Venture Exchange sagged 2.91 points to 630.92.
All but three of the 12 subgroups were lower by noon EDT, with health-care dwindling 3.6%, information technology down 2.7%, and real-estate off 1.5%.
The three gainers were consumer staples, better by 0.7%, gold, improving 0.5%, and materials, sliding forward 0.1%.
ON WALLSTREET
Stocks fell again on Monday as President Donald Trump ramped up his attacks on Federal Reserve Chair Jerome Powell, raising questions about the central bank’s independence, while traders received little signs of progress on global trade talks.
The Dow Jones Industrials collapsed 971.82 points, or 2.5%, to 38,170.41.
The S&P index slid 124.50 points, or 2.4%, to 5,158.20.
The NASDAQ Composite sank 415.55 points, or 2.6%, to 15,870.90.
“Magnificent Seven” tech titans dragged the major indexes lower, with Tesla down 7% and Nvidia losing 6%. Amazon shed 4%, as did Advanced Micro Devices and Meta Platforms. Equipment manufacturer Caterpillar declined 3%.
In a Truth Social post, Trump claimed that the economy would slow unless Powell — who he referred to as “Mr. Too Late, a major loser” — lowered interest rates immediately. This follows another post last week in which Trump also called for the Fed to lower rates, even hinting at Powell’s “termination” — something White House economic advisor Kevin Hassett said the president’s team was studying.
Stocks fell to their session lows after Trump’s post on Monday. The dollar was also under pressure, hitting a three-year low as the threats ramped up. Gold, meanwhile, soared to record highs above $3,400 per ounce.
The S&P 500 is down more than 8% since since April 2, when Trump announced a raft of levies on imports from other countries. The NASDAQ has lost nearly 10% in that time, and the Dow has fallen 9%.
Prices for the 10-year Treasury were down Monday, raising yields to 4.41% from Thursday’s 4.33%. Treasury prices and yields in opposite directions.
Oil prices tumbled $1.16 to $63.52 U.S. a barrel.
Prices for gold popped $105.20 to $3,427.60 U.S.