Canada’s main index opened much lower on Thursday, weighed down by energy and mining stocks, as U.S. President Donald Trump’s reciprocal tariffs against major trading partners amplified fears of global recession.
The TSX Composite Index sank 612.35 points, or 2.4%, to open Thursday at 26.694.83.
The Canadian dollar zoomed upward 0.87 cents to 71.19 cents U.S.
Trump’s new tariffs announced on Wednesday set a baseline of 10% for all imports and higher duties on some of the biggest trading partners of U.S.
But Canada avoided the new levies as goods that comply with the USMCA trade agreement between the U.S., Mexico, and Canada will largely remain exempt, excluding autos, steel and aluminum which fall under separate tariff policies.
In news economic, Statistics Canada reports that in February, Canada’s merchandise exports decreased 5.5%, while imports were up 0.8%. As a result, Canada’s merchandise trade balance with the world went from a surplus of $3.1 billion in January to a deficit of $1.5 billion in February.
ON BAYSTREET
The TSX Venture Exchange subtracted 21.28 points, or 3.4%, to 609.87
All but three of the 12 TSX subgroups fell in the first hour, with energy pounded 4.3%, materials subsided 3.3%, and gold, off 3.1%.
The three gainers proved to be telecoms and utilities, picking up 0.5% each, while consumer staples tacked on 0.4%.
ON WALLSTREET
Stocks cratered Thursday after President Donald Trump unveiled sweeping tariffs of at least 10% and even higher for some countries, raising the risks of a global trade war that hits the already sputtering U.S. economy.
The Dow Jones Industrials stumbled 1,336.61 points, or 3.2%, to begin Thursday at 40,888.71
The S&P 500 index discarded 21.28 points, or 3.4%, to 5,472.38, putting it on track for its worst day since September 2022
The NASDAQ hurtled lower 811.88 points, or 4.6%, to 17,789.16.
Shares of multinational companies tumbled. Nike dumped 11% and Apple dropped 9%. Big sellers of imported goods were among the hardest hit. Five Below lost 8%, Dollar Tree tumbled 23%, and Gap plunged 15%. Tech shares dropped in an overall risk-off mood, with Nvidia off 5% and Tesla also down 3.5%.
The White House unveiled a baseline tariff rate of 10% on all countries that goes into effect on Saturday. Even bigger duties against countries that levy higher rates on the U.S. will be charged in coming days, according to the administration.
Prices for the 10-year Treasury popped, sharply lowering yields to 4.01% from Wednesday’s 4.18%. Treasury prices and yields move in opposite directions.
Oil prices lost $4.96 to $66.75 U.S. a barrel.
Prices for gold swooned $53.50 to $3,112.70 U.S.