Canada’s main stock index kept things rising in volatile trading on Tuesday, as investors evaluated the implications of Prime Minister Mark Carney’s Liberal party victory in an election focused on the trade conflict with the United States. The Liberals made a significant political comeback, securing 168 seats in the parliamentary elections, though they fell short of the 172 seats needed for an outright majority that Carney had aimed for to negotiate tariffs with Trump that threaten Canada’s economy. Carney, who is the first individual to lead two G7 central banks, is expected to quickly gain international credibility due to his extensive experience, according to experts. The Liberal leader has pledged a firm stance against Washington’s import tariffs and emphasized that Canada would need to invest billions to reduce its dependence on the US.
Meanwhile, investors worldwide are also seeking more clarity on the status of US-China trade negotiations. Canada’s auto parts suppliers might benefit from reports suggesting that Trump’s administration could ease some of the duties imposed on foreign parts used in domestically manufactured cars.
On Wall Street, investors are preparing for a busy earnings week, with approximately one-third of S&P 500-listed companies scheduled to release their results between Monday and Friday. Big Tech is particularly in the spotlight. Of the more than 36 per cent of S&P 500 companies that have reported so far this season, around 73 per cent have surpassed expectations, slightly below the five-year average of 77 per cent.
The Canadian dollar traded for 72.26 cents US compared to 72.35 cents US on Monday.
US crude futures traded US$1.54 lower at US$60.51 a barrel, and the Brent contract lost US$1.72 to US$64.14 a barrel.
The price of gold was down US$11.67 to US$3,324.47.
In world markets, the Nikkei remained at ¥35,839.99, the Hang Seng was up 36.15 points to HK$22,008.11, the FTSE was up 46.12 points to ₤8,463.46, and the DAX was up 154.16 points to €22,425.83.
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(Top image generated with AI.)