Futures tied to Canada’s main stock index climbed on Wednesday following a challenging two-day decline, amid news of U.S. President Donald Trump’s administration contemplating easing the stringent tariffs on Canadian and Mexican imports.
The TSX Composite Index weakened 429.57 points, or 1.7%, to close Tuesday at 24,572
March futures were better by 0.4% Wednesday.
The Canadian dollar inched up 0.06 cents to 69.51 cents U.S. early Wednesday.
U.S. Commerce Secretary Howard Lutnick said on Tuesday the government was considering easing the 25% tariffs on Canadian and Mexican imports to products that comply with the trade pact negotiated with the two nations during Trump’s first term.
Two sources privy to the discussions between the Trump administration and officials from Canada and Mexico said the negotiations are focused on exemptions for companies that adhere to the rules of origin in the 2020 U.S.-Mexico-Canada Agreement.
These discussions primarily, though not exclusively, target the automotive industry.
Trump escalated a global trade war on Tuesday after he imposed the tariffs on top U.S. trade partners, citing ineffective border controls.
ON BAYSTREET
The TSX Venture Exchange lost 1.17 points Tuesday to 594.07.
ON WALLSTREET
U.S. stock futures rose early Wednesday as traders hoped for a possible compromise on the Trump administration’s tariffs targeting goods from key trade partners.
Futures for the Dow Jones Industrials advanced 106 points, or 0.3%, to 42,700
Futures for the S&P 500 index hiked 19.25 points, or 0.3%, to 5,808.75
Futures for the tech-heavy NASDAQ added 99.75 points, or 0.5%, to 20,498.75.
Walt Disney Co. is cutting 6% of its global workforce, including employees at its animation studio in Vancouver.
Commerce Secretary Howard Lutnick said Tuesday on Fox Business that the U.S. might meet Canada and Mexico somewhere “in the middle” to “work something out” on tariffs. Earlier in the day, U.S. levies on Canadian and Mexican imports took effect. Canada responded with duties of its own.
President Donald Trump addressed the market’s stress over the tariffs during a Tuesday night address to Congress, saying that a “little disturbance” from the levies was OK.
New economic releases on Wednesday morning that could shed light on the state of the U.S. economy include the ADP private payrolls report for February, as well as the purchasing managers’ index for last month.
In Japan, the Nikkei 225 added 0.2%, while in Hong Kong, the Hang Seng popped 2.8%.
Oil prices faded $1.11 to $67.15 U.S. a barrel.
Gold prices gained $8.40 to $2,929 U.S. an ounce.
