Canada's main index closes lower as trade concerns resurface
Canadian and US stock markets declined Monday, with the TSX closing slightly lower as fresh tariff concerns weighed heavily on investor confidence and sectors like real estate and energy.
The S&P/TSX composite index fell 15.88 points to 27,020.28, a decline of 0.06%. Investing.com reported that the drop was led by notable weakness in real estate investment trusts (REITs), energy, and technology shares.
In an interview with The Canadian Press, Ryan Crowther, portfolio manager at Franklin Templeton’s ClearBridge Investments, described the session as a “soft start to the week,” attributing the downturn to the resurfacing of tariff-related concerns. “Canadian markets (were) weak pretty much across the board on the back of tariffs being reintroduced into the newsfeed today,” he said in an interview. “Obviously, this is not a resolved situation.”
Crowther added that while the trade developments were not entirely new, their return to headlines had prompted “a textbook risk-off day,” as investors reassessed the potential economic fallout.
South of the border, Wall Street extended losses after the White House notified Japan and South Korea that their exports to the US would be subject to 25% tariffs starting Aug. 1, citing persistent trade imbalances. US Commerce secretary Howard Lutnick confirmed Sunday that the new duties would take effect if no agreement is reached, though the updated deadline allows more time for negotiations.
The Dow Jones industrial average dropped 422.17 points to 44,406.36. The S&P 500 fell 49.37 points to 6,229.98, while the Nasdaq composite slid 188.59 points to 20,412.52.
Though Canada is not currently included in the newly announced global tariffs, its exports continue to face levies on goods not compliant with the Canada-US-Mexico Agreement, including 25% on fentanyl-related products and lower tariffs on energy and potash.
Crowther said investors should remain mindful of the broader economic impacts. “We already have impacts on businesses in Canada that have, for example, curtailed capital expenditures,” he said.
Among individual TSX performers, Sandstorm Gold Ltd. gained 6.16% to close at $13.96, while Ngex Minerals Ltd. rose 5.67% to $16.22. OR Royalties Inc. added 5.20%, reaching an all-time high of $37.22. Conversely, ATS Corporation led losses, tumbling 8.08% to $40.49.
The Canadian dollar traded at 73.23¢ US, down from 73.50¢ US on Friday.
August crude oil rose $0.93 to US$67.93 per barrel. Gold edged down $0.10 to US$3,342.80 an ounce.
