Trade war uncertainty hits Canadian markets hard


Daijiworld Media Network – New York

New York, Mar 14: The ongoing trade war is taking a toll on Canada’s financial markets, with the country’s main stock index tumbling alongside US markets since President Donald Trump imposed tariffs on North American trade partners.

The Toronto Stock Exchange’s S&P/TSX composite index, which hit an all-time high on January 30, began its decline the very next day when Trump announced 25% tariffs on all imports from Canada and Mexico. Since then, uncertainty surrounding tariff implementation has led to volatility, with the index shedding about 5% overall.

The financial sector has taken the worst hit, dropping 8.6%, followed by the industrial sector (-7.4%) and the energy sector (-5.4%). While Mexico’s stock market has remained relatively stable due to government intervention, Canada’s financial landscape remains shaky.

US markets have also faced a downturn, with the S&P 500 sliding 10% from its February peak. In Canada, concerns revolve around economic growth, stalled investments, and potential unemployment spikes, said Frances Donald, RBC’s chief economist.

“This uncertainty, in and of itself, is already creating pain,” she noted.

Meanwhile, inflation fears loom in the US, where a University of Michigan survey showed consumer inflation expectations rising to 3.9% the sharpest jump since 1993. The Federal Reserve’s recent rate cuts have helped ease inflation toward its 2% target, but a resurgence remains a concern.

In contrast, Canada’s inflation rate is below 2%, giving the Bank of Canada more room to maneuver. The central bank recently implemented its seventh consecutive rate cut, trimming its overnight rate to 2.75%.

  

Top Stories


Leave a Comment

Title: Trade war uncertainty hits Canadian markets hard



You have 2000 characters left.

Disclaimer:

Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.