Futures for Canada's main stock index fell 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 hiked 83.55 points to end Friday and the week at 16,494.43
The Canadian dollar fell 0.06 cents to 74.25 cents U.S. early Monday
June futures tumbled nearly 1% Monday.
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.
Canaccord Genuity cut the rating on Autocanada to hold from buy; cuts target price to $10.00 from $14.00
CIBC cut the target price on Seven Generations Energy to $15.00 from $16.00
CIBC cut the target price on Toromont Industries to $68.00 from $70.00
ON BAYSTREET
The TSX Venture Exchange recouped 5.14 points Friday to 606.42
ON WALLSTREET
A sharp selloff will start the week on Wall Street after President Donald Trump said on Sunday 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.
Futures for the Dow Jones Industrial Average plunged 478 points, or 1.8%, to 26,021
Futures for the S&P 500 plummeted 48.75 points, or 1.7%, at 2,898.75
NASDAQ futures dropped 162 points, or 2.1%, to 7,703
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 canceling 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.
Shares of Apple and Caterpillar dropped more than 3% in pre-market trading on fears of a trade war. Chipmakers were especially hard hit with Nvidia and Advanced Micro Devices losing more than 4%.
Shares of U.S. companies with big sales in China may lead the market’s losses on Monday including Apple, Wynn Resorts and various chipmakers on fears China may retaliate.
Global trade bellwethers Caterpillar and Boeing could also come under pressure.
Overseas, Japanese markets remained on a week-long holiday, while in Hong Kong, the Hang Seng descended 2.9%,
Oil prices fell 58 cents to $61.36 U.S. a barrel.
Gold prices gained $1.50 at $1,282.80 U.S. an ounce.
