TSX runs higher on rate cut expectations
Investing.com - Canada’s main stock exchange traded higher on Wednesday, as investors assessed developments around U.S. President Donald Trump’s trade agenda and awaited the release of minutes from the Federal Reserve’s latest policy meeting.
By 4.05 ET, the S&P/TSX 60 index standard futures contract had risen by 3.57 points, or 0.22%.
The S&P/TSX Composite composite index gained 68 points, or 0.26%, at 26,972.32 .
Trump said he would implement steep new 50% tariffs on imported copper, a move that could particularly threaten major exporters like Canada. The red metal is critical in a range of industries, from electric vehicles to military hardware and power grid infrastructure.
U.S. copper futures spiked following the comments, temporarily touching a record high. However, analysts cited by Reuters noted that a dip in gold prices was offsetting any benefit from the uptick, sending Canadian mining stocks lower.
U.S. stocks settled higher
U.S. stock index settled higher.
The Dow Jones Industrial Average gained 217.54 points, or 0.49%, theS&P 500index rose 35 points, or 0.57%, and theNASDAQ Compositeclimbed 192 points, or 0.95%
The majority of Federal Reserve policymakers continued to believe that the central bank will cut rates this year, though divisions are starting to form on the monetary policy path ahead, with a couple of members eyeing cuts as soon as July, while some see no need for any easing this year, according to the minutes of the Federal Reserve’s Jun. 17-18 meeting released Wednesday.
Trump sent letters to several major economies outlining trade tariffs against them at the start of the week, while also postponing the effective date of his tariffs to August 1 from July 9.
He insisted at a cabinet meeting on Tuesday that the new deadline will not be pushed back any further, after stating earlier this week that it was “not 100% firm.” He added that negotiations are going well with the European Union and China, but flagged that the EU is days away from receiving its own tariff letter.
Along with the copper tariffs, other levies on everything from pharmaceuticals to semiconductors could soon be unveiled, Trump said.
Meanwhile, Treasury Secretary Scott Bessent claimed that Trump’s levies have raked in $100 billion in income for the U.S. this year and predicted that the number could climb to $300 billion by the end of December. Bessent flagged that the major collections began in the second quarter, when Trump instituted a baseline 10% duty and lifted tariffs on items like steel, aluminum and autos.
Gold strengthens
Gold prices gained amid safe haven demand as uncertainty over U.S. trade tariffs and interest rates.
Broader metal prices also broadly retreated amid pressure from a stronger greenback, which largely maintained its rebound from recent three-year lows.
Spot gold was up 0.29% to $3,311.05 an ounce, while gold futures for September was up 0.07% to $3,319.31/oz
Crude slightly down
Crude prices were slightly lower as industry data showing a sharp increase in U.S. crude inventories amid concerns tariffs could curb demand for oil.
At 4.05 ET, Brent futures were down 0.06% to $70.11 a barrel and U.S. West Texas Intermediate crude futures were up 0.07% to $68.28 a barrel.
Both contracts climbed to a two-week high on Tuesday, driven by supply disruption concerns which stemmed from fresh Houthi attacks on Red Sea (NYSE:SE) shipping lanes.
The American Petroleum Institute reported during the previous session a sharp, unexpected rise in {{8849|U.S. crcrude oil inventories for the week ending on July 4, with a build of 7.1 million barrels, far exceeding the forecast 2.8 million‑barrel draw.
Market watchers now await confirmation from the Energy Information Administration report, due later in the day, especially as the Independence Day holiday weekend usually sees strong travel demand.