Baystreet.ca - Futures for Canada’s main stock index jumped on Monday, due to higher gold prices after U.S. President Donald Trump’s latest tariff threats as well as a rebound in oil prices.
March futures on the S&P/TSX index were up 0.9% Monday.
The Canadian dollar faded 0.05 cents to 69.752cents U.S. early Monday.
Among commodities, gold prices gained more than 1%, as the latest tariff plans fueled demand for the safe-haven metal. Oil prices also ticked higher, rebounding after declines last week.
Trump on Sunday said he will introduce a 25% tariff on all steel and aluminum imports into the U.S, starting from Monday.Canada, Brazil and Mexico are the largest sources of U.S. steel imports, according to U.S. government and American Iron and Steel Institute data.
Canada is also the top supplier of primary aluminum to the U.S., contributing 79% of total imports in the first 11 months of 2024.
Trump on Sunday also said he will announce reciprocal tariffs on Tuesday or Wednesday, to take effect almost immediately, applying them to all countries and matching the tariff rates levied by each country.
In corporate news, global investment firm Brookfield confirmed it will invest 20 billion euros to develop artificial intelligence-related projects in France.
ON BAYSTREET
The TSX Venture Exchange dished off 0.23 points Friday to 639.28. On the week, however, index gained more than 15.5 points, or nearly 2.5%.
ON WALLSTREET
Stock futures rose early Monday, as investors braced for a data-packed week ahead and eyed news that President Donald Trump may announce a new round of tariffs.
Futures for the Dow Jones Industrials hiked 212 points, or 0.5% to 44,633.
Futures for the S&P 500 picked up 29.5 points, or 0.5%, to 6,079.
Futures for the tech-heavy NASDAQ popped 151.25 points, or 0.7%, to 21,742.
Trump told reporters on Sunday that he’s planning to announce a blanket 25% tariff on all steel and aluminum imports on Monday. Trump did not specify when the tariffs would be imposed and noted that he would also issue retaliatory tariffs on countries that tax U.S. imports.
The news comes as Trump’s previously announced duties on China are set to go into effect at midnight on Sunday.
Steel and aluminum stocks popped in the premarket. U.S. Steel and Nucor (NYSE:NUE) were both up 8%, while Cleveland-Cliffs climbed 9%. Alcoa (NYSE:AA) traded 4% higher.
The market remains jittery on a mix of inflation worry coupled with concern over how Trump’s plan for tariffs could adversely affect the U.S. economy. Investors will also look toward more major corporate earnings out this week, including Coca-Cola (NYSE:KO), Unilever (LON:ULVR) and Applovin.
McDonald’s on Monday reported disappointing quarterly revenue, but still saw its shares jump roughly 2.5% before the bell.
In Japan, the Nikkei 225 inched up 0.04% Monday, while in Hong Kong, the Hang Seng barreled ahead 1.8%.
Oil prices collected $1.02 to $72.02 U.S. a barrel.
Gold prices brightened $44.40 to $2,932 U.S. an ounce.