The S&P/TSX Composite Index slipped on Wednesday, hovering near the 36,000 mark after the United States broadened trade restrictions against Canada. Washington announced a ban on a range of Canadian imports, including alcoholic beverages, motorcycles and dairy products, building on last month’s move to levy 50% tariffs on roughly $20 billion worth of Canadian goods and the subsequent retaliatory measures from Ottawa. Saputo fell more than 1%, Canada Packers nearly 2%, and BRP about 1%.
At the same time, escalating tensions in the Middle East drove oil prices higher, reigniting inflation concerns ahead of Friday’s release of US CPI data. Canadian banks came under pressure as expectations for further interest rate hikes increased, with RBC, TD Bank, BMO and Scotiabank each losing more than 1%.
In contrast, miners advanced on the back of rising gold prices, with Agnico Eagle, Barrick and WPM all gaining more than 2%. Lithium Americas surged over 6% after J.P. Morgan initiated coverage with an “overweight” rating.
