TSX finishes mixed as Trump and Musk relationship erupts

Investing.com - Canada’s main stock index was up on Thursday trading, but quickly pared gains, as investors assessed an online fight that erupted between U.S. President Donald Trump and Elon Musk, the CEO of Tesla and SpaceX.

Toronto Stock Exchange’s S&P/TSX Composite composite index slipped gained 13.3 points, up 0.05%.

By the 4:00 ET close, the S&P/TSX 60 Futures index had dropped by 0.8 points, which is 0.05%.

Analysts cited by Reuters flagged that markets have been gauging erratic tariff policies out of the U.S. against signs of relative strength in the Canadian economy.

Services sector activity in Canada touched a three-month high in May, although the Bank of Canada flagged persistent headwinds from U.S. tariffs.

Canada’s trade balance deteriorated sharply in April, with merchandise exports plunging 10.8% and imports sliding 3.5%, according to data released Thursday by Statistics Canada. The resulting merchandise trade deficit hit a record $7.1 billion, widening significantly from the $2.3 billion shortfall posted in March, as US tariffs, oil prices, and a stronger Loonie all contributed.

Elsewhere, Canadian Natural Resources Ltd (NYSE:CNQ) -- the country’s largest oil producer -- has restarted operations at its Jackfish 1 oil sands site in Alberta, which had been halted due to recent wildfires in the province. But the company has noted that it will take several days for output to ramp back up.

Musk and Trump blowout

Shares in Tesla Inc (NASDAQ:TSLA) plunged on Thursday as Trump and Musk’s relationship publicly imploded. Musk has been an outspoken critic of Trump’s "big beautiful bill," causing Trump to be "disappointed" with him, and saying, "He knew the inner workings of the bill better than anybody sitting here. He had no problem with it. All of a sudden he had a problem, and he only developed the problem when he found out we’re going to cut the EV mandate." 

Tensions further escalated as Musk prodded Trump online, surfacing old tweets of Trump opposing raises to the debt ceiling. Trump shot back with threats to Musk’s governmental subsidies and contracts, calling their cancellation, "the easiest way to save money in our budget."

Musk later alleged that the reason the Epstein files have not been made public is that Trump is in them. "Have a nice day, DJT!," Musk said sarcastically. He also called for a new political party, posited that tariffs would create a recession in the second half of the year, and announced that SpaceX would begin decommissioning its Dragon spacecraft in light of the contract cancellations. 

U.S. stocks drop

U.S. stock indexes fell as the drama unfolded between the world’s most powerful politician and its richest man. 

At the 4:00 ET close, Dow Jones Industrial Average lost 108 up 0.3%, S&P 500 was down 31.5 points or 0.5%, and NASDAQ Composite finished negative by 162 points or 0.8%.

In earnings, chipmaker Broadcom Inc (NASDAQ:AVGO) reported a slight beat on EPS and revenues for the quarter, but shares fell on lower guidance, stoking fears of the effects of U.S. restrictions on selling in China, as well as the demand for AI in general.

Trump-Xi call, trade deals in focus

Germany’s new chancellor, Friedrich Merz, held face-to-face talks with U.S. President Donald Trump later Thursday, looking to stave off looming U.S. tariffs and sustain U.S. backing for Ukraine.

But the focus this week has been on a call between Trump and Xi, which markets hope will help revitalize U.S.-China trade talks after Washington admitted they had stalled in recent weeks.

After the discussion, both countries reported a "very good" call, signaling renewed engagements between the two giants on trade and rare earths.

Trump added that Xi had extended an invitation for a state visit to China, which he accepted and reciprocated. “As Presidents of two Great Nations, this is something that we both look forward to doing,” he said.

Gold reverses course

Gold prices were changed its course shedding its earlier gains, with traders booking profit even as a U.S. labor data and uncertainty over trade policy remains.

XAU/USD was down by 0.6% to $3,352.83 an ounce, while Gold Futures for August were down 0.7% to $3,376.15/oz by 5:10 ET.

Crude Oil WTI Futures steadies after gasoline stocks build

Oil prices steadied after recent losses, as an outsized build in U.S. gasoline and distillate inventories raised demand concerns in the world’s largest economy.

At 5:10 ET, Brent futures added 0.1% to $65.29 a barrel, and U.S. West Texas Intermediate crude futures advanced by 0.6% to $63.24 per barrel.

Gasoline inventories grew 5.2 million barrels, much more than expected, while distillate stocks also grew by a healthy 4.2 million barrels.

The readings raised some questions over demand in the world’s biggest fuel consumer, especially heading into the travel-heavy summer season.

(Scott Kanowsky and Pratyush Thakur contributed to this article)