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Business Recorder
4 days ago
- Business
- Business Recorder
TSX slips as Trump says China violated tariff agreement
Canada's main stock index slipped on Friday, as trade worries over U.S. President Donald Trump's accusation in a social media post of China violating a tariff agreement offset positive sentiments about domestic economic growth. 'China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!,' Trump said on his Truth Social platform. The Toronto Stock Exchange's S&P/TSX composite index was down 0.3% at 26,133.45 points. However, for the week, the index was up 1.2%. Global equities had initially rallied in the previous session, after the Court of International Trade ruled late on Wednesday to effectively block most levies imposed since January. However, a U.S. federal appeals court temporarily reinstated Trump's tariffs on Thursday, to consider the government's appeal. 'People who were expecting to see some clarity in the market are going to be somewhat disappointed', said Michael Sprung, president at Sprung Investment Management. 'When Trump says China has violated any sort of agreement the whole premise might be that he might do something retaliatory, which is going to be inflationary and harmful.' Data showed, Canada's economy grew faster than expected in the first quarter. But an increase in imports that led to inventory build-up, lower household spending and weaker final domestic demand showed that the economy was battling on the domestic front. Economists have warned that as tariffs continue on Canada, this trend will persist. This comes ahead of the Bank of Canada's rates decision next week. The market sees a 22% chance of a rate cut next week, down from 27% before GDP data. The TSX has gained 5.4% so far in May and was set for its best month in six, boosted by investor optimism on easing of the global trade war earlier this month. South of the border, U.S. consumer spending increased marginally in April as a rush to beat higher prices from import duties slowed. On TSX, energy subindex fell 1.3% as oil prices headed for a second consecutive weekly loss. Healthcare stocks fell 1.7%.
Business Recorder
24-04-2025
- Business
- Business Recorder
TSX extends rally as yields decline and commodity prices rise
Canadian stocks climbed on Thursday as falling bond yields and rising commodity prices boosted investor sentiment, while markets also weighed evolving U.S. tariff policies. The Toronto Stock Exchange's S&P/TSX Composite Index climbed 0.5% to 24,604.05 points, and was on course for the third successive daily gain. The heavily weighted energy sector added 0.6% as oil prices recovered some losses on Thursday. Materials also climbed 0.6% after gold prices rebounded, as investors bought bullion following a sharp decline in the previous session. 'Any sign of commodities stabilizing, I think is a good sign in today's market,' said Michael Sprung, president at Sprung Investment Management. Canadian government bond yields fell across the curve with 10-year bond yields falling 5.8 basis points to 3.191%. Falling yields, which reduce the risk-free rate benchmark, decrease borrowing costs and enhance the value of companies' future cash flows. TSX falls as Trump's Fed criticism shakes markets Among index sectors, information technology rose over 1%; electronics manufacturer Celestica led sector gains at 5%. Healthcare stocks advanced 1.3%, buoyed by cannabis producer Tilray Brands, which surged 4% On the flip side, consumer staples lost the most, falling 0.4%. China on Thursday called for all 'unilateral' U.S. tariffs to be canceled, as signs emerged that the Trump administration may de-escalate its trade war with Beijing. On Wednesday, TSX had climbed to a three-week high as some optimism took hold of a letup in the global trade war. However, later that day, Trump said a 25% tariff on cars imported from Canada to the United States could go up. Investors' attention was also divided among a series of earnings reports from U.S. companies, which presented a mixed picture. Among domestic earnings, miner Teck Resources beat first-quarter expectations, helped by higher commodity prices and copper sales volumes. Its shares rose 3.8%.
