TSX closes higher with Trump’s expected April 2 tariff announcement in focus

Investing.com - Canada’s main stock market inched higher up til closing on Monday, as investors looked ahead to an expected tariff announcement from U.S. President Donald Trump later this week.

By the 4:00 ET close, the S&P/TSX 60 index had raised by 10.9 point or 0.73%.

The Toronto Stock Exchange’s S&P/TSX composite index was up as well, gaining 158.4 points or 0.64% on the day. The index finished down by 401.91 points or 1.6% on Friday -- its lowest closing level since March 18 and the largest decrease since March 4. The index declined by 0.8% last week.

A separate data point also showed that while gross domestic product in Canada increased by 0.4% in January, activity may have stalled in February.

Meanwhile, Canadian Prime Minister Mark Carney and Trump said they both had a productive conversation, although Ottawa still intends to move forward with promised retaliatory tariffs.

U.S. stocks mixed

U.S. stock indexes fell Monday before rebounding in anticipation of Trump’s anticipated April 2 pronouncement of the imposition of more trade tariffs.

By the 4:00 ET close, the S&P 500 gained 31 points, or 0.55% on the day, and the Dow Jones Industrial Average enjoyed an increase of 417.5 points, or 1%. Conversely, the Nasdaq Composite fell 23.7 points, or 0.14%,

The major indices are on pace to end the month sharply lower, weighed by mounting trade and economic concerns. The broad-based S&P 500 is down 6.3% for the month, the Dow is poised for a 5% loss, and the tech-heavy Nasdaq has dropped 8%.

Some economists have flagged that the moves threaten to refuel inflationary pressures and dent growth. Consumer spending rebounded by less than anticipated in February and a metric tracking underlying prices rose by the most in 13 months, data showed on Friday, while a survey of 12-month consumer inflation expectations spiked to the highest point in almost 2-1/2 years in March.

Trump is expected to unveil a batch of new levies at a much-anticipated announcement on April 2. Since taking office for second term in the White House earlier this year, Trump’s policy changes have included increased tariffs on China, levies on steel and aluminum goods, and duties on imported cars and light trucks.

A Wall Street Journal report over the weekend said Trump will consider higher tariffs against a broader range of countries, as he embarks on a trade agenda aimed at correcting perceived trade imbalances against the U.S.

Biopharma and Biotech stock suffered the most in Monday’s trading, after the Wall Street Journal reported that the FDA’s top vaccine official, Peter Marks, was ousted. As of 12:20 ET, Moderna Inc (BMV:MRNA) (NASDAQ:MRNA) was down 9%, Sarepta Therapeutics Inc (NASDAQ:SRPT) was down 9.3%, and Novavax Inc (NASDAQ:NVAX) was down 7.5%, among other industry leaders. 

Crude prices gain significantly

Oil prices erased earlier losses on Monday to trade higher, but were on pace for a quarterly loss that has been fueled by concerns that economic activity will suffer under the new global trade regime.

As of 5:00 ET, West Texas Intermediate Crude Oil Futures were up 3% to $71.38 a barrel. Brent Oil Futures gained 2.6% to $74.69 per barrel.

Both benchmarks were on track to post their first quarterly drop in two quarters, even after three straight weeks of gains.

The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, is also set to begin its program of monthly increases in oil production in April.

Gold touches record high

Gold prices rose on Monday, notching a fresh record high as safe-haven demand was boosted by reports that Trump was considering imposing broader and bigger trade tariffs this week.

The yellow metal had a strong run-up through March, hitting a series of record highs as investors turned increasingly risk-averse amid concerns over Trump’s tariffs and their economic impact.

As of 5:00 ET, Gold Futures were up 1.4%, pricing in at $3,157.40 per ounce and below the record high of $3,160.96. XAU/USD was up 1.3% to $3,124.02/oz after hitting the record high of $3,127.88.

Heightened fears of a U.S. recession also furthered gold’s advance, with Goldman Sachs (NYSE:GS) now forecasting a 35% chance of a downturn in the next 12 months.

(Scott Kanowsky also contributed to this article)