(Reuters) – Futures tied to Canada’s main stock index fell on Monday as investors shunned risky assets amid concerns that U.S. President Donald Trump’s upcoming tariffs will hurt the global economy.
The futures on the S&P/TSX index were down 0.5% at 6:51 a.m. ET (1051 GMT).
Stocks across the world plunged after Trump said on Sunday that reciprocal tariffs he is expected to announce on Wednesday will include all nations, and not just a select group of 10 to 15 countries with the biggest trade imbalances.
While Canada had secured protections against new U.S. auto tariffs, including a 60-day delay and annual duty-free quotas, under a 2018 trade agreement with the U.S. and Mexico, there’s no evidence Trump will honor those commitments.
The Canadian government said it fully expects the U.S. to honor the agreements on Wednesday.
Meanwhile, shares of Canadian gold miners could get support from bullion hitting a record high. Price of the safe haven asset was set to post its biggest quarterly gain in over 38 years due to the uncertainty from the escalating trade war.
Heavyweight oil producers could track a rise in crude prices due to Trump’s threat to impose secondary tariffs on buyers of Russian oil and warning of possible military action against Iran if it did not agree to a deal over its nuclear program.
On the other hand, copper prices dropped to their weakest in more than two weeks due to the impending tariff announcement, but the losses were cushioned by strong factory data from top metals consumer China.
Canada’s main stock index on Friday fell by the most in three weeks, as U.S. inflation figures and an expanding trade war stoked fears of a global economic slowdown.
In corporate news, consulting services firm CGI entered into an agreement to acquire Apside, a digital and engineering services firm in France.
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(Reporting by Sanchayaita Roy; Editing by Leroy Leo)
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