Stocks in Toronto fought their way to respectability Tuesday, after taking huge losses in the first few hours, weighed mostly by energy and real-estate issues, following proposed tariffs on international goods placed by U.S. President Donald Trump.
The TSX fell just short of breakeven, 5.21 points, to close Tuesday at 25,405.14
The Canadian dollar was up 0.13 cents at 71.09 cents U.S.
Trump on Monday said he would impose a 25% tariff on imports from Canada and Mexico until the countries clamped down on drugs, particularly fentanyl, and migrants crossing the border.
The proposed measures could also violate the terms of a free-trade deal among the United States, Mexico and Canada.
Trump separately outlined “an additional 10% tariff, above any additional tariffs” on imports from China.
In corporate news, Financial Times reports Canaccord Genuity is working with bankers to review its British wealth management business, with potential outcomes ranging from a sale to bringing in another investor. Canaccord shares gained 16 cents, or 1.5% to $10.74.
Elsewhere, Alimentation Couche-Tard said it would continue to pursue a deal with Japan’s Seven & i.
The company, whose shares gained $1.27, or 1.6%, to $79.09, reported third-quarter earnings below estimates on Monday.
Energy weighed most heavily on the markets today, as Precision Drilling sank $3.84, or 4.3%, to $86.50, while Topaz Energy lost $1.17, or 4%, to $27.81.
Real-estate stocks also suffered, with CAPREIT units shedding $1.23, or 2.7%, to $44.28, while units of Interrent REIT lost 37 cents, or 3.4%, to $10.61.
In consumer stocks, BRP Inc. lost $4.61, or 6.5%, to $66.67, while Linamar ditched $3.65, or 5.8%, to $59.75.
Tech stocks tried to even things out, as Dye & Durham triumphed $2.09, or 11.3%, to $20.59, while Quarterhill took on a dime, or 6.3%, to $1.70.
Gold gained ground, with Kinross Gold acquiring 28 cents a share, or 2%, to $13.98, while New Gold captured seven cents, or 1.9%, to $3.79.
In consumer staples, Primo Water accumulated $2.04, or 5.8%, to $37.40, while Metro advanced $1.81, or 2%, to $91.42.
Seven of the 12 TSX subgroups fell Tuesday, led by energy, giving way 2.4%, followed by real-estate, losing 1.7%, and consumer discretionary stocks, off 1.3%.
The five gainers were led by information technology, up 1.3%, while gold advanced 1.2%, and consumer staples, better by 0.9%.
ON BAYSTREET
The TSX Venture Exchange sank 3.15 points to 599.78
All but three of the 12 subgroups were lower, weighed most by energy, down 1.6%, consumer discretionary stocks, falling 1.3%, and real-estate, weaker by 1.2%.
The three gainers proved to be information technology, up 1%, gold, brighter 0.7%, and consumer staples, ahead 0.3%.
ON WALLSTREET
Stocks rose on Tuesday, with the S&P 500 and the Dow Jones Industrial Average jumping to fresh highs, as investors shook off the threat of new tariffs from President-elect Donald Trump.
The 30-stock index recovered 123.74 points to 44,860.31.
The much-broader index gained 34.26 points to 6,021.63.
The NASDAQ Composite picked up 119.46 points to 19,174.30.
Both the Dow and S&P 500 notched new intraday and closing records.
Trump on Monday night called for a 25% tariff on products from Mexico and Canada, as well as an additional 10% levy on Chinese goods.
He has already said he would impose a tariff of up to 20% on all imports, and an additional duty of at least 60% on products from China.
To be sure, Wall Street appeared to be taking the news in stride.
While stocks were mixed, some individual names and funds moved as investors analyzed potential impacts from the policies Trump discussed. Automakers Ford gave back 2.6% and General Motors slid more than 9%. Alcohol company Constellation Brands, known in part for Mexican beers Corona and Modelo, fell more than 3%.
Investors also analyzed minutes from the Federal Reserve meeting released Tuesday afternoon. The central bank said it expects interest rate cuts in the future, but to only expect them “gradually.”
Prices for the 10-year Treasury slid, raising yields to 4.30% from Monday’s 4.26%. Treasury prices and yields move in opposite directions.
Oil prices faded 30 cents to $68.64 U.S. a barrel.
Prices for gold perked $13.70 an ounce to $2,632.20 U.S.
