(RTTNews) - It's likely to be a positive start for Canadian stocks on Tuesday as higher crude oil and gold prices are likely to trigger some buying in energy and metal sectors. However, fears of a renewed trade war following U.S. President-elect Donald Trump pledging to impose tariffs on all imports from Mexico, Canada and China, may hurt sentiment and limit market's upside.
Donald Trump has vowed that he will impose massive hikes in tariffs on goods imported from China, Mexico and Canada immediately after taking office.
This is in response to illegal immigration and "crime and drugs" coming across the border from these countries to the United States, according to him.
"On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders," Trump said in a statement posted on Truth Social Monday. "This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!"
Trump added that import duty on Chinese goods will go up by 10% until Beijing takes action to stem the flow of illegal drugs into the U.S.
In Canadian earnings news, Calian Group Ltd. (CGY.TO) reported adjusted net profit of $11.5 million for the quarter ended September 30, 2024, compared to adjusted net profit of $12.7 million in the corresponding quarter of the previous year.
Alimentation Couche-Tard Inc. (ATD.TO) reported net earnings of $708.8 million, or $0.75 per diluted share for the second quarter of fiscal 2025 compared with $819.2 million, or $0.85 per diluted share for the second quarter of fiscal 2024.
On the economic front, preliminary data on Canadian wholesale sales for the month of October is due at 8:30 AM ET.
Despite posting a new all-time high around mid-morning, the Canadian market ended on a negative note on Monday, due to sharp losses in energy and materials sectors.
A positive reaction to news U.S. President-elect Donald Trump intends to nominate billionaire hedge fund manager Scott Bessent as Treasury Secretary buoyed up U.S. stocks, and this aided sentiment a bit on Bay Street.
The benchmark S&P/TSX Composite Index, which climbed to 25,542.57, ended down 21.30 points or 0.08% at 25,422.98.
Asian stocks closed broadly lower on Tuesday after U.S. President-elect Donald Trump said he plans to impose 25% tariffs on Mexico and Canada and an additional 10% on China on his first day in office, ramping up fears of a renewed trade war.
European stocks are weak, amid fears of a renewed trade war after Trump pledged to impose tariffs on all imports from Mexico, Canada and China. French political tensions also weighed on markets after far-right leader Marine Le Pen said on Monday that she could bring down France's minority government by the end of the year unless changes are made to the country's budget bill.
In commodities, West Texas Intermediate Crude oil futures are up $0.69 or 1% at $69.63 a barrel.
Gold futures are gaining $13.00 or 0.5% at $2,631.50 an ounce, while Silver futures are up $0.361 or 1.19% at $30.600 an ounce.
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