TSX runs higher on rate cut expectations
Investing.com - Canada’s most followed stock indexes closed higher Wednesday after slumping to a seven-week low on Tuesday after U.S. President Trump imposed 25% tariffs on goods from its northern neighbor and a lower 10% tariff on oil products. The upside followed news that Trump and Canda’s Prime Minister, Justin Trudeau, held ’friendly’ talks today. In addition, the White House announced a one-month tariff delay for the big 3 US automakers.
The benchmark S&P/TSX Composite closed up 299 points, or 1.2%. The S&P/TSX 60 index closed up 16 points, or 1.1%.
Trump said the two talked today about tariffs, and after discussing his issues with the fentanyl problem, the call "ended in a “somewhat” friendly manner."
"Justin Trudeau, of Canada, called me to ask what could be done about Tariffs. I told him that many people have died from Fentanyl that came through the Borders of Canada and Mexico, and nothing has convinced me that it has stopped," Trump said on Truth. "He said that it’s gotten better, but I said, “That’s not good enough.” The call ended in a “somewhat” friendly manner! He was unable to tell me when the Canadian Election is taking place, which made me curious, like, what’s going on here? I then realized he is trying to use this issue to stay in power. Good luck Justin!"
Earlier today, the White House announced that it would be granting a one-month exemption to the big three U.S. automakers from the recent tariffs imposed on Mexico and Canada.
"We spoke with the big 3 auto dealers. We are going to give a one month exemption on any autos coming through USMCA," Press Secretary Karoline Leavitt said in a press briefing on Wednesday.
Shares of Ford, General Motors (NYSE:GM), and Stellantis (NYSE:STLA) all closed sharply higher on Wednesday.
U.S. stocks gain
In the U.S. on Wednesday, the benchmark S&P 500 traded up 1.1% and the 30-stock Dow Jones Industrial Average gained 1.1%. The tech-heavy Nasdaq Composite gained 1.5%.
Private sector employment data in the U.S. showed the job market continues to cool, which could be viewed positively for the inflation picture. ADP (NASDAQ:ADP) reported that private employers added 77,000 jobs in February, well below the 140,000 expected.
In addition, the Institute for Supply Management’s non-manufacturing PMI index, which accounts for a large bulk of the American economy, unexpectedly firmed in February, rising to a reading of 53.5 from 52.8.
Oil falls again
Oil prices fell on Wednesday, dropping for the third day on tariff-related headwinds and increasing global production. At 4 PM ET, Brent oil futures fell 2.3% to US$69.42 a barrel, while West Texas Intermediate crude dropped 2.7% to US$66.44 a barrel.
Gold sustains gains
Gold continued Tuesday’s gains on Wednesday, as Gold futures rose 0.3% to US$2,930.31 by 4 PM ET.
(Frank DeMatteo and Scott Kanowsky contributed to this article)