Canada’s main stock index climbed on Tuesday, despite a dip in oil prices though the energy sector grew. Meanwhile, the Canadian government announced plans to increase military spending to meet NATO’s target of 2 per cent of GDP within the current fiscal year—a move some analysts believe could smooth the way for a trade agreement with the United States.
Investors continued to monitor the progress of US-China trade negotiations, hoping for a resolution that avoids the imposition of significant tariffs by either side. Last month, both countries agreed to temporarily reduce their tariffs, a development seen as a positive step following President Donald Trump’s proposal for sweeping import duties.
Looking ahead, traders are turning their attention to Wednesday’s US inflation report, which is expected to shape market expectations around potential interest rate cuts by the Federal Reserve.
The Canadian dollar traded for 73.04 cents US compared to 73.03 cents US on Monday.
US crude futures traded $0.59 lower at US$64.70 a barrel, and the Brent contract lost $0.45 to US$66.59 a barrel.
The price of gold was down US$12.02 to US$3,321.54.
In world markets, the Nikkei was up 122.94 points to ¥38,211.51, the Hang Seng was down 18.56 points to HK$24,162.87 the FTSE was up 20.80 points to ₤8,853.08, but the DAX was down 186.76 points to €23,987.56.
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