TSX slips as US tariffs hit Canada; CPI fears lift rates expectations
S&P/TSX Composite edged lower near 36,000 after US expanded trade restrictions on Canada. Oil rose on Middle East tensions ahead of Friday’s US CPI, pressuring banks; miners gained on higher gold.
The S&P/TSX Composite Index edged lower to trade near 36,000 on Wednesday after the US expanded trade restrictions on Canada. The US banned imports of numerous alcoholic beverages, motorcycles and dairy products, following 50% tariffs imposed last month on about $20 billion of Canadian goods and retaliatory tariffs from Canada. Saputo lost more than 1%, Canada Packers nearly 2%, and BRP about 1%. Intensifying Middle East hostilities pushed oil prices higher and rekindled inflation concerns ahead of Friday’s US CPI data.
Banks came under pressure as rate-hike expectations increased, with RBC, TD Bank, BMO and Scotiabank each losing more than 1%. Miners advanced with higher gold prices, as Agnico Eagle, Barrick and WPM each added over 2%. P. Morgan initiated coverage with an “overweight” rating.