Canada’s main stock index ended Monday with a little bump as investors weighed the impact of the breakdown in US-Canada trade negotiations. On Saturday, the United States imposed 50 per cent tariffs on certain Canadian goods after the two longtime trading partners failed to reach a new agreement, with each side accusing the other of causing the talks to collapse. These measures add to existing US tariffs on steel, lumber, and automobiles, sectors that have already faced significant challenges over the past 18 months. Trade experts warned that the additional tariffs could further weaken vulnerable industries, potentially resulting in job losses and business closures. Prime Minister Mark Carney announced that Canada had suspended trade discussions and vowed to respond with equivalent countermeasures, stating the country would retaliate “dollar for dollar.”
The S&P 500 edged lower as weakness in major technology stocks offset support from declining Treasury yields. Yields fell following reports that the US Treasury may tap its General Account to help finance a debt buyback program. The report followed comments from Treasury Secretary Scott Bessent last week, indicating that the Treasury Department’s plans to at least double government debt buybacks in the coming months could exceed the previously announced US$4 billion program. Losses among semiconductor stocks weighed heavily on the broader market, with technology shares leading the decline.
| TSX | 36,714.12 | +93.89 |  |
| TSXV | 993.93 | +5.56 | |
| CSE | 168.06 | -0.01 |  |
| DJIA | 53,417.16 | +140.15 | |
| NASDAQ | 25,980.19 | -200.26 | |
| S&P 500 | 7,652.86 | -21.51 | |
The Canadian dollar traded for 72.21 cents US compared to 72.51 cents US on Friday.
US crude futures traded US$2.05 lower at US$85.01 a barrel, and the Brent contract lost US$2.37 to US$92.02 a barrel.
The price of gold was up US$35.71 to US$4,651.03.
In world markets, the Nikkei was down 488.27 points to ¥65,528.09, the Hang Seng was down 492.13 points to HK$25,517.33, the FTSE was up 37.76 points to ₤10,854.32, and the DAX was down 29.96 points to €26,106.60.