Canada’s main stock index rebounded on Tuesday, recovering from Friday’s sharp decline sparked by renewed US-China tensions. The TSX had recorded its largest drop in six months ahead of the long weekend, following President Donald Trump’s threats against China in response to Beijing’s tighter controls on rare earth exports. However, sentiment improved slightly after Trump struck a more conciliatory tone over the weekend.
Meanwhile, US markets were split as trade tensions with China dampened investor confidence. Both nations imposed new port fees on ocean shipping companies handling goods ranging from holiday merchandise to crude oil, reigniting concerns over a trade war. Investors are also closely watching Federal Reserve Chair Jerome Powell’s upcoming speech at the National Association for Business Economics (NABE) annual meeting for clues on the future direction of US monetary policy.
The Canadian dollar traded for 71.18 cents US compared to 71.42 cents US on Friday.
US crude futures traded $0.81 lower at US$58.68 a barrel, and the Brent contract lost $0.99 to US$62.33 a barrel.
The price of gold was up US$31.20 to US$4,143.61.
In world markets, the Nikkei was down 1,241.48 points to ¥46,847.32, the Hang Seng was down 448.13 points to HK$25,441.35, the FTSE was up 9.90 points to ₤9,452.77, and the DAX was down 150.99 points to €24,236.94.
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