Canada’s main stock index fell on Tuesday, as investors priced in U.S. President Donald Trump’s announcement of additional tariffs on Canadian metals.
The TSX Composite Index slid 132.51 points, to 24,248.20
The Canadian dollar nosed up 0.07 cents to 69.37 cents U.S.
Alimentation Couche-Tard remains in the news. The company said it is confident there is a “clear path” to overcome U.S. regulatory hurdles in its proposed $47 billion acquisition of Japan’s Seven & i.
Couche-Tard shares ended Tuesday down $1.86, or 2.6%, to $69.59.
New Gold and Aya Gold & Silver were among the biggest gainers on the main index. New Gold hiked 32 cents, or 8%, to $4.29. Aya surged $1.59, or 15.7%, to $11.72.
Elsewhere, First Majestic Silver gained 83 cents, or 10.5%, to $8.83, while Orla Mining progressed 83 cents, or 8%, to $11.26.
In energy, Enerflex prospered 43 cents, or 4.3%, to $10.43, while Vermilion Energy marched ahead 60 cents, or 5.7%, to $11.17.
Consumer staples dropped sharply, however, as Jamieson Wellness sank $1.01, or 3.5%, to $28.24, while Metro dwindled $3.09, or 3.2%, to $92.71.
In discretionary issues, BRP Inc. handed back $2.67, or 4.5%, to $56.33, while Magna International flopped $2.15, or 3.9%, to $53.05.
In health-care, Tilray stumbled seven cents, or 7.4%, to 88 cents, while shares in Sienna Senior Living lost 20 cents, or 1.3%, to $15.81.
ON BAYSTREET
The TSX Venture Exchange gained 7.05 points, or 1.2%, to 601.79.
Eight of the 12 TSX subgroups were lower on the session, with consumer staples skidding 2.7%, health-care off 2.3%, and consumer discretionary stocks settling 1.7%,
The four gainers were led by gold, gaining 3.2%, while materials took on 2.8%, and energy improved 0.7%.
ON WALLSTREET
The S&P 500 slid in a head-spinning day for traders as they digested new tariffs proposed by President Donald Trump that were in flux throughout the day. The trade policy uncertainty has brought the benchmark to the brink of a correction, which is defined as a decline of 10% from its high.
The Dow Jones Industrials crumbled 478.22 points, or 1.1%, to 41,433,48
The much-broader index faded 42.49 points to 5,572.07.
The NASDAQ Composite lost 32.22 points to 17,436.10.
In a Truth Social post, Trump said steel and aluminum duties would go up by an additional 25%, bringing them to 50%. He added that the levies would take effect Wednesday.
The S&P 500 was in the green at one point during the trading session before Trump declared on Truth Social that Canadian steel and aluminum duties would double to 50% from 25%, effective Wednesday. The president made the move in response to Ontario Premier Doug Ford’s surcharge on electricity exported to the United States.
Then later in the day, Ford said he was temporarily suspending the 25% surcharge after talking with Commerce Secretary Howard Lutnick.
Finally, top Trump trade advisor Peter Navarro said on CNBC Tuesday afternoon that Trump would not impose the 50% tariffs on Canadian steel and aluminum.
This is the latest in a series of disorderly trade policy moves that have rattled corporate and consumer confidence and weighed on markets over the past three weeks.
The pullback led Citigroup to lower its rating on U.S. stocks to neutral from overweight, pointing to a “pause in U.S. exceptionalism” as the reason. Adding to worries around the economy was the latest guidance from Delta Air Lines. The company slashed its earnings outlook due to weaker U.S. demand, pushing the stock down more than 5%.
Delta Air Lines added to recession worries Tuesday, as the airline slashed its earnings outlook due to weaker U.S. demand, pushing the stock down 7.3%. Other travel-related stocks followed suit with Disney and Airbnb both off by 5%.
Prices for the 10-year Treasury backed off, raising yields to 4.28% from Monday’s 4.22%. Treasury prices and yields move in opposite directions.
Oil prices raced higher 52 cents to $66.55 U.S. a barrel.
Prices for gold revived $24.20 an ounce to $2,923.60 U.S.
