Canada’s main stock index opened lower on Monday, as renewed tariff concerns sparked by U.S. President Donald Trump weighed on investor sentiment, ahead of the Federal Reserve’s monetary policy decision this week.
The TSX Composite Index eased off 93.93 points to start Monday and the week at 24,037.55.
The Canadian dollar nosed up 0.06 cents at 72.40 cents U.S.
Trump announced on Sunday a 100% tariff on movies produced outside the U.S., saying the American film industry was dying a “very fast death” due to the incentives offered by other countries to lure filmmakers.
Shares of U.S. film and television production firms were down before the bell.
While the U.S. and China’s talks provided a brief respite on Friday, after Beijing said it was considering Washington’s offer to discuss Trump’s 145% tariffs, the uncertainty around the outcome continues to loom over the markets.
Separately, Prime Minister Mark Carney said on Friday he will be in Washington on Tuesday for what he expects to be “difficult but constructive” talks with Trump.
Investors will also focus on the Fed’s meeting, where the rates are expected to be kept steady.
Meantime, in Canada, Skeena Resources was in the news, on new developments regarding its Eskey Creek Gold-Silver Project.
Skeena shares began Monday up 37 cents, or 2.4%, to $16.89.
ON BAYSTREET
The TSX Venture Exchange eked up 1.36 points, or 1.6%, to 657.76.
All but two of the 12 subgroups were lower in the first hour of trade Monday, as energy dived 2%, health-care ailed 1.9%, and real-estate fell 0.8%.
Gold made its way into the plus column 2%, while materials struggled 0.7%.
ON WALLSTREET
Stocks fell to start the week as investors hoping for news of trade deals instead had to grapple with another set of tariffs after President Donald Trump announced surprise levies on movies made outside the U.S.
The Dow Jones Industrials gave back 96.5 points to 41,220.93.
The much broader index skidded 37.47 points to 5,649.20, putting the index in danger of ending its longest winning streak since November 2004.
The NASDAQ Composite faded 136.16 points to 17,841.57.
Trump on Sunday said he authorized relevant government agencies to begin imposing a 100% tariff on films produced abroad, calling efforts from other nations to attract film productions a “national security threat.” It remains unclear if the levies would impact movies shown in theaters or movies on streaming services.
Shares of Walt Disney and Netflix — all companies that film abroad — traded 1.4% and 3.4% lower in early morning trading, respectively. Warner Bros Discovery also shed around 3%.
Trump also told reporters on Sunday that “we’re negotiating with many countries, but at the end of this, I’ll set my own deals — because I set the deal, they don’t set the deal.” Trump added that has no plans to talk to Chinese President Xi Jinping, dashing investors’ hopes that progress is being made to ease U.S.-China trade tensions.
Prices for the 10-year Treasury fell, raising yields to 4.35% from Friday’s 4.31%. Treasury prices and yields move in opposite directions
Oil prices dropped $1.12 to $57.17 U.S. a barrel.
Prices for gold jumped $86.20 to $3,229.50 U.S.