Futures tied to Canada’s main stock index rebounded from eight-month lows on Tuesday after three straight sessions of heavy selling amid prospects for potential U.S. tariff negotiations, while rising bullion prices added to the positive sentiment.
The TSX Composite Index lost another 334.01 points, or 1.4%, to conclude Monday at 22,859.46.
June futures hiked 1.2% Monday,
The Canadian dollar forged ahead 25 cents to 70.49 cents U.S.
U.S. President Donald Trump said on Monday he would talk to China, Japan and other countries over the tariffs, but was not looking at a pause on the duties.
This came after Trump threatened to impose an additional 50% tariff on China if Beijing does not withdraw its retaliatory tariffs on the United States. Beijing said on Tuesday it will never accept the “blackmail nature” of U.S. tariff threats.
Shares of Canadian gold miners could get support as bullion prices drifted higher, aided by the global trade tensions, and a softer dollar.
In particular, Barrick Gold’s Reko Diq project in Pakistan reportedly aims to secure over $2 billion in financing from international lenders.
The IVEY School of Business is ready Tuesday to release its March PMI figures (about 10 a.m. EDT)
ON BAYSTREET
The TSX Venture Exchange dropped 8.5 points Monday, or 1.5%, to 567.42.
ON WALLSTREET
Stock futures bounced on Tuesday in a slight reprieve from the market turmoil sparked by President Donald Trump’s tariff rollout that led to the biggest equity losses since the pandemic.
Futures for the Dow Jones Industrials spiked 851 points, or 2.2%, to 39,016.
Futures for the S&P 500 index sprang 91.75 points, or 1.8%, to 5,189.
Futures for the tech-heavy NASDAQ charged ahead 272.25 points, or 1.6%, to 17,835.50.
The moves come after three days of steep losses and violent volatility. Monday marked the highest trading volume for U.S. markets in at least 18 years at roughly 29 billion shares.
The 30-stock Dow Jones Industrial Average plunged more than 1,700 points at one point in the session. Between the day’s highs and lows, the index swung 2,595 points. The blue-chip index ultimately closed 349 points, or 0.9%, lower.
The S&P 500 briefly entered bear market territory at the lows of Monday’s session, down more than 20% from its record, before rebounding slightly and finishing the session slightly lower.
The benchmark lost 10% in two days to end last week, its worst losses since 2020 during the outbreak of COVID, as investors fear Trump’s shockingly high tariff rates on most of the world will lead to a recession.
There was little fundamental reason apparent for the bounce Tuesday with more dire trade news overnight. China said it will “fight to the end” after Trump said Monday the U.S. would slap an additional 5
There was some light buying in the premarket of some beaten-up tech shares. Nvidia and Amazon were both up 2% apiece, while Apple gained 1%.
In Japan, the Nikkei 225 index ballooned 6% Tuesday, while in Hong Kong, the Hang Seng captured 1.5%.
Oil prices picked up 36 cents to $61.00 U.S. a barrel.
Gold prices gained $52.90 to $3,026.50 U.S. an ounce.