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CANADA STOCKS-TSX ends slightly lower as Trump tariff threat hits sentiment
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CANADA STOCKS-TSX ends slightly lower as Trump tariff threat hits sentiment
Nov 26, 2024 1:51 PM

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TSX ends down 0.02% at 25,405.14

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Energy falls 2.3%; oil settles 0.2% lower

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Bombardier shares lose 9.3%

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Technology advances 1.1%

(Updates at market close)

By Nikhil Sharma and Fergal Smith

Nov 26 (Reuters) - Canada's stock market inched lower on

Tuesday, weighed by declines for energy, railroad and auto parts

manufacturing shares, after U.S. President-elect Donald Trump

vowed to impose big tariffs on top trading partners, including

Canada.

The S&P/TSX composite index ended down 5.21

points, or 0.02%, at 25,405.14, its second straight day of

modest declines after posting a record closing high on Friday.

Trump on Monday pledged big tariffs on the United States'

three largest trading partners - Canada, Mexico and China - in a

move that helped push the Canadian dollar to a 4-1/2-year low

against its U.S. counterpart.

"Tariffs dump sand in the gears of the global economy and

markets hate them," Colin Cieszynski, chief market strategist at

SIA Wealth Management, said in a note.

Officials from Mexico, Canada and China warned that Trump's

tariff threat would harm the economies of all involved.

"These types of threats are mostly designed to extract

concessions," said Angelo Kourkafas, investment strategist at

Edward Jones Investments, adding they are, however, "impacting

sentiment in the short term."

Canada sends about 75% of its exports to the United States,

including oil. Trump's plan does not exempt crude oil from trade

penalties, two sources familiar with the plan told Reuters.

U.S. crude futures settled 0.25% lower at $68.77 a

barrel after Israel agreed to a ceasefire deal with Lebanon,

while the Toronto market's energy sector was down 2.3%.

Industrials fell 1%, weighed by declines for railroad

shares. Automotive suppliers also lost ground, with Magna

International Inc ( MGA ) falling 4.7%. Business jet

manufacturer Bombardier Inc ( BDRPF ) lost 9.3%.

The TSX is set to rise in 2025 but returns could slow after

investors potentially front-loaded much of the positive news, a

Reuters poll found.

Helping to limit the decline on Tuesday, technology rose

1.1% and financials added 0.5%.

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