Canada's main stock index fell at the open on Monday, after U.S. President Donald Trump threatened to raise tariffs on China, triggering a global rout in risky assets.
The S&P/TSX Composite Index shook off 133.57 points to begin the day and the week at 16,360.86
The Canadian dollar shed 0.10 cents to 74.21 cents
Air Canada on Monday reported a quarterly adjusted profit while analysts were expecting a loss, driven by higher passenger traffic and its acquisition of the Aeroplan loyalty program.
Shares in the Maple Leaf airline took flight $1.47, or 4.4%, to $35.09
Canaccord Genuity cut the rating on Autocanada to hold from buy; cuts target price to $10.00 from $14.00
Autocanada shares were in reverse 57 cents, or 5.3%, to $10.19.
CIBC cut the target price on Seven Generations Energy to $15.00 from $16.00. Seven Generations shares sagged 33 cents, or 3.5%, to $9.12
CIBC cut the target price on Toromont Industries to $68.00 from $70.00. Toromont shares lost $1.45, or 2.2%, to $64.39.
ON BAYSTREET
The TSX Venture Exchange slumbered 3.71 points to 602.71
All but one of the 12 Toronto subgroups were negative, as consumer discretionary stocks lost 1.4%, energy trailed Friday’s close by 1.3%, and health-care skidded 1.1%
Only real-estate held out against the negative tide, squeezing ahead 0.1%.
ON WALLSTREET
Wall Street kicked off the week with a sharp selloff on Monday after President Donald Trump said that the U.S. will hike tariffs on goods imported from China, casting doubt on recent optimism that the world’s two largest economies were close to a resolution to their trade battle.
The Dow Jones Industrials dipped 281.28 points, or 1.1%, to 26,223.67
The S&P 500 sank 30.43 points, or 1%, to 2,915.21,
The NASDAQ Composite index tumbled 101.22 points, or 1.2%, to 8,062.77
Shares of Apple and Caterpillar dropped at least 2% each on fears of a trade war. Chipmakers were also hit hard with Nvidia and Advanced Micro Devices both losing more than 3%.
Trump said in a tweet Sunday afternoon that the current 10% levies on $200 billion worth of Chinese goods will rise to 25% on Friday. He also threatened to impose 25% tariffs on an additional $325 billion of Chinese goods "shortly."
Though trade negotiations between Washington and Beijing officials are set to resume on Wednesday, the president lamented that the progress is moving “too slowly” as China tries to re-negotiate terms of the deal.
The Wall Street Journal reported that China is considering cancelling its trade talks with the U.S. this week in light of Trump’s latest threats. Citing a source, the Journal said Beijing had been surprised by the new threats.
Prices for the benchmark 10-year U.S. Treasury fell sharply, raising yields to 2.49% from Friday’s 2.53%. Treasury prices and yields move in opposite directions.
Oil prices dipped 22 cents to $61.72 U.S. a barrel.
Gold prices slipped two dollars to $1,279.30 U.S. an ounce.
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