Futures on Canada's main stock index fell Monday as global markets turned risk-averse following U.S. President Donald Trump's threat to impose tariffs on eight European nations unless the U.S. was allowed to buy Greenland.
The TSX index picked up 11.63 points Friday to 33,040.55. On the week, the index rallied more than 427 points, or 1.3%.
March futures declined 0.6% Monday.
In the latest escalation of Trump's tariff campaign, the U.S. president said on Saturday that he would levy an additional 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain starting February 1. Those tariffs would climb to 25% by June 1 if no agreement on Greenland is reached.
The announcement reignited trade war concerns and cast doubt over trade agreements the EU and Britain negotiated with the U.S. last year.
On the economic slate, Statistics Canada reported its consumer price index rose 2.4% year over year in December, up from an increase of 2.2% in November. On a seasonally adjusted monthly basis, the CPI rose 0.3% in December.
In November, 150,832 new motor vehicles were sold in Canada, decreasing 6.6% from November 2024.
Internationally, markets in Japan sagged 0.7%, while the Hang Seng in Hong Kong fell 1.1%.
In an effort to strengthen ties with Canada's second-largest trading partner after the U.S., Prime Minister Mark Carney secured an initial agreement with China to slash tariffs on electric vehicles and canola.
The deal comes as Canada seeks to diversify its trade relationships amid mounting tensions with the U.S.
ON BAYSTREET
The TSX Venture Exchange recovered 4.59 points Friday to close at 1,091.13, a gain on the week of 98 points, or 9.9%.
Oil prices slid 44 cents Monday to $59.00 U.S. a barrel.
Gold prices ballooned $80.70 Monday to $4,671.10 U.S. per ounce.
ON WALLSTREET
In the United States, markets are shuttered Monday for Martin Luther King Day.
