Futures tied to Canada’s main stock index fell sharply on Wednesday, after China announced additional tariffs on U.S. goods in retaliation after President Donald Trump’s reciprocal tariffs took effect, intensifying fears of a global economic fallout.
The TSX Composite Index faltered 352.56 points, or 1.5%, to close Tuesday at 22,506.90.
June futures faded 1.2% Wednesday,
The Canadian dollar eked up 0.03 cents to 70.40 cents U.S.
Hopes of concessions faded after a massive 104% duty on Chinese goods came into force, while the European Union prepared retaliatory measures, leaving investors increasingly wary of risk assets.
China’s finance ministry said it will impose 84% tariffs on U.S. goods from Thursday, up from the 34% previously announced.
U.S. Treasuries, the bedrock of the global financial system, were hit by fresh selling pressure, as investors rushed to liquidate even their most secure holdings in a bid for cash.
Meanwhile, shares of Canadian gold miners found support from higher bullion prices, as traders sought the safe-haven asset with a weaker dollar and the rising prospect of U.S. rate cuts.
Barrick Gold and Aya Gold were in sharp focus before the bell, Barrick shares ended Tuesday down 14 cents to $24.56, while those for Aya gained 15 cents, or 1.7%, to $9.19.
ON BAYSTREET
The TSX Venture Exchange shed 5.66 points, or 1%, Tuesday to 561.76
ON WALLSTREET
Stock futures were down sharply again on Wednesday after China announced retaliatory tariffs on U.S. goods in the latest escalation of global trade tensions.
Futures for the Dow Jones Industrials cratered 786 points, or 2.1%, to 37,076.
Futures for the S&P 500 index fell 104.25 points, or 2.1%, to 4,916.
Futures for the tech-heavy NASDAQ were pummeled 308.75 points, or 1.8%, to 16,935.
Over the course of four days, the Dow has lost more than 4,500 points, while the S&P 500 has sustained a 12% loss. The NASDAQ is down more than 13% in that period.
China announced it will impose an 84% levy on U.S. goods starting Thursday. This comes after U.S. tariffs of 104% on Chinese imports took effect shortly after midnight.
Apple shares declined as much as 2% in the premarket before paring that decline. Ford Motor also fell more than 2%, while General Motors shed 1%.
U.S. tariffs on imports from other countries also took effect. Canada reconfirmed Tuesday plans to put into effect 25% retaliatory tariffs on U.S.-made vehicles. This includes vehicles that aren’t compliant with the United States-Mexico-Canada Agreement, in addition to non-Canadian and non-Mexican content of USMCA-compliant fully assembled vehicles brought into Canada from the U.S.
In Japan, the Nikkei 225 index plunged 3.9% Wednesday, while in Hong Kong, the Hang Seng lost 0.7%.
Oil prices stumbled $3.95 to $55.63 U.S. a barrel.
Gold prices gained $89.90 to $3,080.10 U.S. an ounce.