Economic news

TSX Flat as Market Weighs US Tariffs, Iran Risk

  • Gold miners lead gains
  • Energy shares among worst hit
  • Trump says he will hike tariffs on Canadian cars, trucks to 50% amid trade spat

August 24 (Reuters) - Canada's commodity-heavy stock index was little changed on ‌Monday, as investors weighed new U.S. tariffs on Canadian goods and awaited details on Washington's threatened sanctions against Iran.

The S&P/TSX Composite Index was flat at ​36,615.45 points by 10:00 a.m. ET.

  • The U.S. imposed 50% tariffs on ​some Canadian goods on Saturday, after the two neighbors failed ⁠to reach a trade deal.

  • President Donald Trump also said on Monday ​that U.S. tariffs on all cars and trucks, automotive parts and ​steel will be increased to 50% starting January 1, 2027.

  • Materials sector, which includes metal mining shares, rose 1.1%, leading gains on the main index as gold hit a ​three-month high against a subdued dollar, while investors awaited U.S. inflation ​data and remarks from Federal Reserve Chairman Kevin Warsh this week for clues ‌on ⁠the interest-rate outlook.

  • I-80 Gold Corp , Seabridge Gold and NovaGold Resources were up more than 4% each, leading sectoral gains.

  • "Gold's having a good move ... I think you're seeing more of a move back towards the commodities," ​said Greg Taylor, ​chief investment ⁠officer at PenderFund Capital Management.

  • The heavyweight energy sector was the biggest drag on the index, falling 0.9% ​as oil prices slipped, with investors taking profits ahead ​of expected ⁠new U.S. sanctions on Iran.

  • U.S. Treasury Secretary Scott Bessent, who is set to hold a press conference at 2 p.m. EDT (1800 GMT), has threatened ⁠to roll ​out "the greatest financial offensive ever" against Iran. ​Trump has also threatened sanctions on Iran's trading partners.

  • Five of the TSX's 10 major ​sectors traded higher.

Reporting by Sudeshna Ghoshal in Bengaluru; Editing by Sahal Muhammed

Source: Reuters


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