TORONTO – In late-morning trading, Canada’s main stock index experienced a notable increase of over 100 points, bolstered by strong performances in the utility and technology sectors. As a significant development, the loonie faced a downturn following comments made by U.S. President Donald Trump regarding potential tariffs on Canadian goods, which are set to be considered on February 1.
The S&P/TSX composite index rose by 128.08 points, reaching a total of 25,299.66. This uptick reflects a positive trend in the Canadian market, amid broader economic uncertainties influenced by external tariff discussions.
Meanwhile, in the United States, major stock indexes also witnessed substantial gains. The Dow Jones industrial average surged by 415.95 points, landing at 43,903.78. Additionally, the S&P 500 index rose by 31.72 points to reach 6,028.38, while the Nasdaq composite saw an increase of 26.36 points, closing at 19,656.56. It is noteworthy that U.S. stock markets were closed on the preceding Monday in observance of Martin Luther King Jr. Day, creating a day of catch-up trading following the holiday.
The Canadian dollar, however, traded at 69.60 cents USD, a decline from 69.78 cents USD reported on Monday. This dip was largely attributed to President Trump’s announcement of potential tariffs that could affect trade relations between Canada and Mexico, with a proposed 25 percent tariff looming on the horizon.
On the commodities front, the March crude oil contract experienced a decrease, falling by US$1.29 to reach US$76.10 per barrel. The February natural gas contract similarly saw a decline, dropping 16 cents to settle at US$3.79 per mmBTU. These movements in oil and natural gas prices may reflect ongoing fluctuations in global energy markets, influenced by geopolitical factors and domestic economic shifts.
In contrast, the precious metals market showed signs of resilience. The February gold contract increased by US$5.10, reaching a total of US$2,753.80 an ounce. This rise in gold prices indicates a possible safe-haven investment response amidst uncertainties surrounding trade policies and currency fluctuations. Additionally, the March copper contract experienced a slight decline, decreasing by four cents to trade at US$4.33 per pound.
This report offers a comprehensive view of the current state of the Canadian and U.S. financial markets, reflecting significant stock movements as well as currency fluctuations influenced by potential trade tariffs. Investors and market analysts are closely monitoring these developments, as they could have far-reaching effects on trade relations and economic performance moving forward.
