Investing.com - Canada’s main stock index rose slightly higher on Tuesday, as investors eyed the outlook for U.S. President Donald Trump’s tariff plans.
By the 4:00 ET close, the S&P/TSX 60 index standard had inched up by 1.3 points or 0.1%.
The Toronto Stock Exchange’s TSX index climbed by 35.4 points or 0.14% after climbing 1.3% in the prior session, touching a three-week high, after media reports suggested that Trump’s approach to an expected April 2 tariff announcement would be more limited than initially projected. Levies on the automotive, semiconductor and pharmaceutical sectors would also likely be excluded, the reports said.
Speaking to reporters on Monday, Trump added that "a lot of countries" may receive breaks on the duties, although he provided few other details. A White House spokesperson noted that the exact date when sector-specific tariffs could come into effect was still to be determined and "at the discretion" of Trump.
The comments spurred hopes that the White House may be flexible in its negotiations over exemptions to its levies, offering some relief to investors who have been fretting over the broader economic impact of the trade taxes.
Closer to home, traders were also digesting Prime Minister Mark Carney’s decision over the weekend to call a snap election for April 28. Carney has argued that he needed a strong mandate to bolster his position when negotiating with Trump.
Canadian gross domestic product figures for January are due out later this week, along with a gauge of inflation that is preferred by U.S. Federal Reserve policymakers.
U.S. stocks close higher
U.S. stock indexes rose narrowly on Tuesday after the previous session’s sharp gains following reports that Trump’s upcoming trade tariffs could be less severe than feared.
By the 4:00 ET close, the S&P 500 gained 9 points or 0.16%, the Dow Jones Industrial Average rose 4.2 points points or 0.01%. The Nasdaq Compositewas the biggest gainer, finishing up 83.3 points or 0.46%.
The main Wall Street indices surged on Monday, driven chiefly by hopes that Trump will be more flexible with his tariff agenda.
The benchmark S&P 500 rose 1.8%, the tech-heavy Nasdaq soared 2.3%, and the blue-chip Dow gained almost 600 points, or 1.4%.
Markets are still waiting to see just how Trump’s tariff agenda will play out, and how it will impact the global economy. This notion battered Wall Street over the past month, briefly putting averages at six-month lows and in correction territory.
Crude prices gain
Oil prices were mixed on Tuesday, after the announcement of U.S. tariffs on countries that buy Venezuelan oil.
As of 5:30 ET, West Texas Intermediate Crude Oil Futures were up 0.13% to $69.20 a barrel, whilst Brent Oil Futures fell 0.01% to $72.54.
Both benchmarks moved higher by more than 1% in the previous season after Trump announced a 25% tariff on countries importing oil and gas from Venezuela. China is Venezuela’s largest buyer, and this move could result in a fairly substantial tightening in the global oil balance.
Gold edges higher
Gold prices rose slightly in European trade, remaining pinned below recent record highs amid easing concerns over the severity of Trump’s proposed tariffs.
But safe-haven demand was still relatively high as uncertainty persisted over just what tariffs will be imposed on the April 2 deadline. Investors were also cautious before a string of key economic readings this week.
Gold and other precious metals have retreated from recent peaks this week. But weakness in the dollar limited bigger losses in metal markets, keeping them close to recent highs.
(Scott Kanowsky also contributed to this article)