Futures tracking Canadian stocks fell on Wednesday after the US broadened trade restrictions on Canada. On Tuesday, Washington announced a ban on imports of a range of Canadian products, including alcoholic beverages, motorcycles, and dairy goods. These measures come on top of the 50% tariffs imposed last month on roughly $20 billion worth of Canadian exports, and follow retaliatory tariffs introduced by Ottawa.
At the same time, escalating conflict in the Middle East drove oil prices higher, reigniting concerns about inflation. Risks to global energy supplies have increased in recent weeks as the six‑month‑old war has intensified, amplifying inflation worries ahead of Friday’s release of US CPI data.
Credit‑sensitive stocks, notably major banks, have come under pressure amid growing expectations of further interest rate hikes in both Canada and the United States. Elsewhere, US‑listed shares of Lithium Americas advanced in premarket trading after J.P. Morgan initiated coverage with an “overweight” rating. Gold prices also climbed, providing support for gold miners.
