TSX closes higher, remains resilient despite trade tensions
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Investing.com -- Canada’s main stock indexes closed with gains on Monday, despite news of renewed trade tensions between the U.S. and China, as well as U.S. President Donald Trump’s raising of steel tariffs from 25% to 50%.
By the 4:00 ET close, the bellwether S&P/TSX 60 index rose 12.5 points or 0.8%, following a fall of 0.1% on Friday.
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Toronto’s S&P/TSX Composite finished higher by 213.9 points or 0.8% following the previous session, in which the index dropped 46.2 points or 0.2%.
It appeared as if trade tensions are rising between the U.S. and China, following a trade agreement that sent sky-high tariffs between the two nations down. Last week, U.S. Treasury Secretary Scott Bessent said further talks with China had "stalled," and Trump accused China of violating the agreement, saying, "so much for being Mr. NICE GUY!"
On Monday, China responded, calling Trump’s accusations "groundless," and promised measures to safeguard its interests. Trump and China’s President Xi Jinping are set to call at some point within the week.
However, Bloomberg reported later in the day that the U.S. extended a tariff pause on some Chinese goods to August 31, easing fears and bolstering markets.
Trump also raised tariffs on steel and aluminum stocks from 25% to 50%, coming into effect on Wednesday, sending U.S. steel stocks higher.
U.S. stocks rebound
Trading in U.S. stock indexes was lower on Monday, but those losses turned green at close, as investors gauged the heightened tensions and potentially tighter sanctions on the tech sector.
By the 4:00 ET close, the S&P 500 was higher by 27.4 points or 0.4%, the NASDAQ Composite finished up 128.9 points or 0.7%, and the Dow Jones Industrial Average gained 35.4 points or 0.1%.
In Friday’s trading, the S&P dropped 0.1%, the Nasdaq 0.3%, and the Dow gained 0.1%.
Chip stocks cut losses experienced in early trading Monday following reports that the Trump administration is prepping to tighten sanctions on China tech. Bloomberg reported Friday that the sanctions are to be enforced through existing rules but expanded to include subsidiaries of already sanctioned firms.
Crude Oil jumps after OPEC+ meeting
Oil prices rose strongly Monday after OPEC+ announced plans to increase production in July by the same amount as the prior two months, something of a relief after talk of a bigger increase.
By 4:50 ET, Crude Oil WTI Futures bounded up 3.9%, pricing in at $63.13 a barrel, while Brent Oil Futures rose 3.8% to $65.19 per barrel.
The Organization of the Petroleum Exporting Countries and their allies, known as OPEC+, decided on Saturday to raise output by 411,000 barrels per day in July.