TORONTO – Canada’s main stock index moved lower Tuesday, as losses in base metal stocks weighed against gains in energy, while U.S. stock markets were mixed.
U.S. President Donald Trump has announced 25 per cent tariffs on all aluminum and steel imports to the U.S. starting on March 12, prompting a new wave of reactions from business leaders and politicians.
“I think investors are still reacting to Trump’s metal tariffs, and also we’re seeing a new wave of corporate earnings,” said Brianne Gardner, senior wealth manager of Velocity Investment Partners at Raymond James Ltd.
“Our biggest concern, and something that we’re watching, is that Trump’s tariff policies obviously will add inflationary pressures to the U.S.,” she said.
The S&P/TSX composite index closed down 27.03 points at 25,631.83.
In New York, the Dow Jones industrial average was up 123.24 points at 44,593.65. The S&P 500 index was up 2.06 points at 6,068.50, while the Nasdaq composite was down 70.41 points at 19,643.86.
The next report on inflation in the U.S. comes out Wednesday, and price growth is expected to have slowed, said Gardner. But tariffs could turn that trend around.
U.S. Federal Reserve chair Jerome Powell said Tuesday in testimony on Capitol Hill that the central bank is in no hurry to cut interest rates.
“We do not need to be in a hurry to adjust our policy stance,” he told lawmakers.
However, the Fed still expects two rate cuts this year, said Gardner.
Meanwhile, Canada is expected to see one full percentage point in interest rate cuts this year, she said — though the Bank of Canada will likely be more aggressive if tariffs come into play, putting more downward pressure on the loonie.
Overall, “it’s a volatile start to the year,” said Gardner.
But after two very strong years for markets, investors should be expecting some volatility, she added: “We think it’s going to continue.”
Coca-Cola was one of several large companies reporting earnings Tuesday in the U.S., beating expectations.
In Canada, Shopify was the big name reporting earnings, with profits and revenues rising year-over-year.
The Canadian dollar traded for 69.90 cents US compared with 69.82 cents US on Monday.
The March crude oil contract was up US$1 at US$73.32 per barrel and the March natural gas contract was up eight cents at US$3.52 per mmBTU.
The April gold contract was down US$1.80 at US$2,932.60 an ounce and the March copper contract was down 11 cents at US$4.60 a pound.
— With files from The Associated Press
This report by The Canadian Press was first published Feb. 11, 2025.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
