Equities in Canada’s largest market gained some traction early Wednesday afternoon, as investors worried over the latest escalation in the trade war after Canada imposed retaliatory tariffs in response to U.S. levies on steel and aluminum imports kicking in.
The TSX Composite Index picked up 117.86 points to 24,366.06
The Canadian dollar progressed 0.13 cents to 69.41 cents U.S.
Canada swiftly responded to U.S. President Donald Trump’s increased tariffs on all U.S. steel and aluminum imports, which took effect on Wednesday, by announcing plans for C$29.8 billion in retaliatory tariffs.
This comes on the heels of Trump on Tuesday backing off from his plans to double the trade duties on Canadian steel and aluminum products.
Trump’s on-and-off tariff policies have created uncertainty among companies and households, hurting business investments and consumer spending.
In corporate news, Step Energy Services missed fourth-quarter revenue expectations on Tuesday. Step shares dipped three cents to $4.04.
Elsewhere, electronic equipment company Celestica shot higher $4.84, or 3.9%, to $129.59, while e-commerce firm Shopify gained $6.05, or 4.5%, to $140.01
The Bank of Canada reduced its benchmark interest rate by 25 basis points on Wednesday, the seventh consecutive cut, bringing its policy rate to 2.75%.
ON BAYSTREET
The TSX Venture Exchange captured 6.47 points, or 1.1%, to 608.36.
The 12 TSX subgroups were evenly divided, as information technology sprang 1.7%, energy proved 1.6% more energetic, and financials were richer by 0.4%.
The half-dozen laggards were weighed most by consumer discretionary and telecom shares, each down 1.4%, while consumer staples gave up 1%.
ON WALLSTREET
The NASDAQ Composite rebounded after a soft inflation report eased concerns about the economy and as investors snapped up beaten-up technology shares.
The Dow Jones Industrials was in the minus column 24.36 points to 41,409.12
The much-broader index recouped 42.73 points to 5,614.79.
The NASDAQ Composite regained 266.9 points, or 1.5%, to 17,702.99..
This week alone, the Dow, S&P 500 and NASDAQ have all dropped more than 3%. The S&P 500 briefly dipped into correction territory on Tuesday, down 10% from a record set in February. Over the past month, the S&P 500 has lost nearly 8%, while the Dow dipped 6.6%, and NASDAQ has shed11.3%.
Nvidia shares gained 6%, while Meta Platforms progressed 2.3% and Tesla rose 7.4%.
The consumer price index, a broad measure of costs across the U.S. economy, increased 0.2% for the month, putting the annual inflation rate at 2.8%. This was lower than the respective Dow Jones estimates for 0.3% and 2.9%. Core CPI, which excludes volatile food and energy prices, rose 0.2% on the month and 3.1% for the past 12 months, both below expectations.
Part of the reason for the recent selloff has been concern that President Donald Trump’s volatile trade policy would raise inflation and slow growth, otherwise known as stagflation. The CPI report eased those concerns. The report also would leave room for the Federal Reserve to cut rates again later this year if the economy needed it.
Prices for the 10-year Treasury lost ground, raising yields to 4.32% from Tuesday’s 4.28%. Treasury prices and yields move in opposite directions.
Oil prices took on $1.46 to $67.71 U.S. a barrel.
Prices for gold leaped $21.50 an ounce to $2,942.40 U.S.
