Canada’s top stock index declined on Monday, as falling commodity prices counterbalanced potential gains stemming from improving trade relations between the US and China. Investors appeared unfazed by renewed trade tensions between the US and Canada. Last Thursday, President Trump abruptly ended trade negotiations with Ottawa, criticizing a Canadian advertisement related to tariffs as misleading. By Saturday, he announced an additional 10 per cent increase in tariffs on Canadian goods, on top of existing rates.
Meanwhile, senior economic officials from China and the US outlined a preliminary trade agreement on Sunday, ahead of a highly anticipated meeting between President Trump and Chinese President Xi Jinping in South Korea later this week. The proposed deal would temporarily halt the escalation of US tariffs and China’s restrictions on rare earth exports, offering some relief to investors navigating the ongoing trade uncertainty between the world’s two largest economies.
Semiconductor stocks, which are particularly vulnerable to US-China trade tensions, led the market rally. Nvidia (NASDAQ:NVDA), Broadcom (NASDAQ:AVGO), and AMD (NASDAQ:AMD) each rose between 2.20 to 2.80 per cent. The tentative agreement may include a postponement of China’s rare earth export limits, a cancellation of Trump’s proposed 100 per cent tariffs on Chinese imports set to begin November 1, and a resumption of Chinese purchases of US soybeans. It could also resolve the dispute over TikTok, potentially securing a deal for the US version of the popular social media app.
| TSX | 30,275.76 | -77.31 |  |
| TSXV | 950.35 | -13.37 | |
| CSE | 175.24 | -1.97 | |
| DJIA | 47,544.59 | +337.47 |  |
| NASDAQ | 23,637.46 | +432.59 | |
| S&P 500 | 6,875.16 | +83.47 | |
The Canadian dollar traded for 71.45 cents US compared to 71.43 cents US on Friday.
US crude futures traded $0.06 lower at US$61.44 a barrel, and the Brent contract lost $0.19 to US$65.75 a barrel.
The price of gold was down US$107.97 to US$4,005.51.
In world markets, the Nikkei was up 1,212.67 points to ¥50,512.32, the Hang Seng was up 273.55 points to HK$26,433.70, the FTSE was up 3.76 points to ₤9,639.45, and the DAX was up 68.89 points to €24,308.78.
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