Futures tied to Canada's main stock index rose on Tuesday, signaling a recovery after Friday's sharp decline due to renewed U.S.-China tensions that triggered profit-taking across the market.
The TSX collapsed 419.09 points, or 1.4%, by Friday’s closing bell to 29,850.89. This week, the index dropped 621 points, or 2.04%, Friday’s bruising was its steepest drop in six months after U.S. President Donald Trump issued a series of threats against China in response to Beijing's tightening of rare earth export restrictions.
December futures were up 0.4%. Tuesday. Markets in Canada were closed Monday for Thanksgiving.
In corporate developments, investment firm Brookfield said on Monday it would buy the remaining 26% stake in U.S.-based asset manager Oaktree Capital Management for about $3 billion.
Bombardier added a new order from Comlux Aviation for its Global 8000 business jet to its backlog, the Canadian plane maker announced on Monday.
On matters economic, Statistics Canada reported in August, the total value of building permits issued in Canada was down $139.2 million (-1.2%) to $11.6 billion.
ON BAYSTREET
The TSX Venture Exchange faltered 13.5 points, or 1.4%, Friday to 980.77, a decline of 16.7 points on the week, or 1.73%.
ON WALLSTREET
Stock futures fell Tuesday, resuming the selling seen late last week, as fears around U.S.-China trade relations continue to percolate.
Futures for the Dow Jones Industrials plunged 238 points, or 0.5%, to 46,060.
Futures for the S&P 500 slumped 56.50 points, or 0.8%, to 6,639.25.
Futures for the NASDAQ stumbled 276.50 points, or 1.1%, to 24,645.75.
The selling was led by the AI shares that have driven the bull market, but also were the biggest losers during Friday’s rout. Nvidia and AMD each lost more than 2%. Tesla and Oracle lost about 3%.
The declines came after China and the U.S. began charging additional port fees on each others’ cargo ships, an escalation in the ongoing trade spat between the world’s largest economies. On top of that, China imposed sanctions on five of South Korea’s Hanwha Ocean’s U.S. subsidiaries.
Trade tensions have been rising since late last week, when President Donald Trump threatened to place an additional 100% tariff on Chinese imports, sending stocks sharply lower. The Dow on Friday lost more than 800 points, while the S&P 500 posted its biggest one-day loss since April 10.
On Sunday, however, Trump dialed back his rhetoric, noting in a Truth Social post: “Don’t worry about China, it will all be fine.”
That comment sent stocks soaring on Monday. The S&P 500 and Dow each jumped more than 1% on the day, marking the former’s biggest
one-day gain since May 27.
The Dow had its best day since Sept. 11 and broke a five-day losing streak. Monday’s rebound retraced more than half of the S&P 500's decline on Friday, and two-thirds of the Dow’s steep losses.
Tuesday’s moves came despite the release of mostly solid quarterly results. J&J, JPMorgan Chase and Wells Fargo all reported earnings that beat analyst expectations. Goldman Sachs also topped estimates.
In Japan, the Nikkei 225 plummeted 2.6% Tuesday, while in Hong Kong, the Hang Seng –dipped 1.7%%.
Oil prices fell 1.24 to $58.25 U.S. a barrel.
Gold prices surged $13.90 to $4,146.90 U.S. per ounce.
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