Investing.com - Canada’s main stock exchange relished a second-straight day of gains on Tuesday, as investors geared up for the unveiling of U.S. President Donald Trump’s latest batch of tariffs on April 2.
By the 4:00 ET close, the S&P/TSX 60 index had risen by 6.8 points or 0.5%.
Toronto Stock Exchange ’s S&P/TSX composite index gained 115.8 points or 0.5%, having ended the prior session up by 0.6%. However, for the month, the index was down by 1.9%. Financials and energy, which together account for roughly half of the TSX’s weighting, both advanced, while a jump in the price of gold also pushed materials higher.
Trump is anticipated to reveal sweeping levies on both friends and adversaries alike as part of what he has called "Liberation Day."
A Wall Street Journal report over the weekend indicated that Trump is contemplating increased tariffs on a wider array of nations as part of his trade strategy to address what he claims are unfair trade imbalances impacting the U.S.
These measures are expected to significantly impact global trade dynamics and have raised concerns about their potential to contribute to recession risks. Goldman Sachs (NYSE: GS ) has increased the probability of a U.S. recession to 35%, up from a previous estimate of 20%, citing the anticipated rise in average tariff rates to 15%.
Canadian Prime Minister Mark Carney confirmed that his administration is in talks with U.S. officials, and reiterated that if unforeseen tariff measures are announced by Trump on Wednesday, Canada will respond retaliatorily.
U.S. stocks plunge in first quarter, end day mixed
U.S. stock indexes were mixed on Tuesday, following a sharp decline in the first quarter, as investors weighed recession risks ahead of Trump’s tariff pronouncements.
By the 4:00 ET close, the Nasdaq Composite finished up 150.6 points, or 0.9%, while the S&P 500 gained 21.2 points, or 0.4%. Contrarily, the Dow Jones Industrial Average fell by 11.8 points, or 0.03%, on the day.
The main Wall Street indices suffered in March, and much of the first quarter, on fears the trade levies the Trump administration is set to announce will crimp economic activity and refuel inflation, potentially forcing the U.S. economy, the world’s largest, into recession.
The broad-based S&P 500 lost nearly 5% in the first quarter of 2025, the tech-heavy Nasdaq plunged by 10%, and the blue chip Dow lost nearly 2%.
That said, short flows into U.S. equities have brought net positioning in the Nasdaq back to neutral, matching the S&P 500 levels as markets brace for upcoming tariff announcements, according to Citi strategists.
“The consensus positioning on U.S. large caps equities is now neutral, whereas small caps [...] has [sic] seen a marginal rise in net positioning levels, but overall equity positioning is still bearish here,” strategists led by Chris Montagu said in a note.
Oil steadies near five-week highs, lower on the day
Oil prices hovered around a five-week peak, as a threat from Trump to impose secondary tariffs on Russian crude and attack Iran countered worries over a tariff-induced global slowdown.
As of 5:20 ET, Crude Oil WTI Futures were down 0.5%, moving to $71.13 per barrel. Brent Oil Futures also fell to $74.41 per barrel, losing 0.5%.
Over the weekend, Trump told NBC News that he was very angry with Russian President Vladimir Putin and said he would slap secondary duties of 25% to 50% on Russian oil buyers should the Kremlin move to block efforts to end the war in Ukraine. Trump has also said he would place tariffs on Iran if Tehran does not work with the White House to alter to its nuclear program.
Such sanctions could dent global oil supplies and hit Moscow’s largest customers like China and India, possibly giving some lift to prices. Still, a slowdown in broader economic activity may place a drag on oil demand, potentially limiting gains.
Gold ’s fresh record peak
Gold prices notched a new all-time high in Asian trading on Tuesday, boosted by bullion’s safe-haven appeal as market participants prepared for the upcoming tariff announcements from Trump.
Uncertainty surrounding these trade policies has driven investors towards gold, which is traditionally viewed as a safe-haven asset during times of geopolitical and economic instability.
The yellow metal has now logged consecutive fresh record highs in the last four sessions. However, it seems poised for its first losing day of the week as of 5:20 ET.
By 5:20 ET, Gold Futures were down 0.1% to $3,148.55/oz. XAU/USD was also down, losing 0.3% and falling to $3,114.37/oz.
(Scott Kanowsky and Reuters contributed reporting.)