Canada’s main stock index rose on Tuesday as domestic inflation rate unexpectedly cooled, while prospects of automotive tariff exemptions further lifted investor sentiment.
The TSX Composite Index popped 203.79 points by midday Tuesday to 24,070.32.
The Canadian dollar retreated 0.24 cents to 71.7 cents U.S.
Trump on Monday suggested potential exemptions for the 25% tariffs on imports of autos and auto parts from Mexico, Canada and other regions.
Oil prices were largely stable after new tariff exemptions and rebounding Chinese oil imports were offset by the IEA following OPEC in reducing its oil demand forecast.
Heavyweight financials rose with Brookfield Asset Management rising $1.37, or 2%, to $68.43.
Among individual stocks, women’s clothing retailer Groupe Dynamite climbed $1.22, or 10.5%, to $12.80 after reporting upbeat fourth-quarter results and announcing a share buyback program.
It’s a busy day on the economic front, with consumer price index figures for March rising 2.3% on a year-over-year basis in March, down from a 2.6% increase in February. On a seasonally-adjusted monthly basis, the CPI was unchanged in March.
Elsewhere, manufacturing sales rose 0.2% in February, mainly on higher sales of primary metals and chemical products. Meanwhile, sales in the petroleum and coal product subsector declined the most.
Moreover, Canada Mortgage and Housing Corporation housing starts for all areas in Canada decreased 3.3% in March (214,155 units) compared to February (221,405 units). Actual housing starts were down 12.5% year-over-year in centres with a population of 10,000 or greater, with 14,924 units recorded in March, compared to 17,052 in March 2024.
Lastly, the Canadian Real Estate Association reported national home sales fell 4.8% month-over-month. Actual (not seasonally adjusted) monthly activity came in 9.3% below March 2024.
ON BAYSTREET
The TSX Venture Exchange moved lower 0.81 points to 627.52.
Eight of the 12 subgroups were higher as information technology and real-estate each vaulted 1.4%, while financials gained 1%.
The four laggards were weighed most by consumer staples, down 1%, telecoms, sagging 0.8%, and consumer discretionary stocks, inching back 0.4%.
ON WALLSTREET
U.S. stocks wavered on Tuesday, as investors analyzed the latest batch of first-quarter earnings reports and enjoyed a recent decline in market turmoil.
The Dow Jones Industrials gained 130.33 points to break for lunch at 40,655.12.
The S&P 500 took on 24.76 points to 5,430.73.
The NASDAQ Composite improved 83.23 points to 16,914.69.
Despite recent gains, the three major indexes are still clawing back losses seen in the wake of Trump’s original tariff announcement on April 2. The Dow and NASDAQ have each slid more than 3%, while the S&P 500 has dropped more than 4%.
Bank of America added 4% after exceeding analyst expectations for the first quarter. Other major reports due this week include United Airlines and Netflix.
Beyond earnings, Boeing shares fell more than 1% after Bloomberg reported that Beijing ordered Chinese airlines not to take more of the company’s planes.
Tuesday’s action came after the major stock indexes ended Monday’s session higher, buoyed by the tech sector.
Stocks received a tailwind after guidance on Friday from U.S. Customs and Border Protection revealed exemptions from “reciprocal” tariffs for electronic products such as smartphones, computers and semiconductors.
Still, comments from President Donald Trump and Commerce Secretary Howard Lutnick on Sunday suggested these exemptions might only be temporary.
Prices for the 10-year Treasury gained ground Tuesday, pushing yields down to 4.34% from Monday’s 4.38%. Treasury prices and yields move in opposite directions.
Oil prices ditched 60 cents to $60.93 U.S. a barrel.
Prices for gold acquired $10.90 to $3,237.20 U.S.