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CANADA STOCKS-Tech and financials drag TSX as investors assess tariff threats

ReutersFeb 19, 2025 3:36 PM

Updates with morning prices

By Pranav Kashyap

- Canada's primary stock index fell on Wednesday, dragged by technology and financials, as investors evaluated U.S. President Donald Trump's threat of tariffs on automobiles, semiconductors and pharmaceutical products.

At 10:03 a.m. ET (1503 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 0.7% at 25,461.84.

At least ten major sectors fell; the technology sector .SPTTTK was the worst performer after dropping 1.6%.

Financials .SPTTFS, which has the heaviest weighting on the index, lost 0.9% and materials .GSPTTMT declined 0.8%.

The only sector trading in the green was energy .SPTTEN, rising 0.6%, tracking crude oil prices bolstered by worries about potential supply disruptions in Russia and the U.S. O/R

"This isn't a decline that's specific to Canada today. It's part of a general pull back in global markets. Today's feels more like a day of consolidation, perhaps some profit-taking," said Colin Cieszynski, chief market strategist at SIA Wealth Management.

On Tuesday, Trump said he intends to impose auto tariffs "in the neighborhood of 25%," along with similar duties on semiconductor and pharmaceutical imports.

Since his inauguration just four weeks ago, Trump has enforced a 10% tariff on all imports from China, adding to the existing levies. He also declared a 25% tariff on goods from Mexico and non-energy imports from Canada, before suspending the levies for a month.

On Wednesday, investors were awaiting minutes from the U.S. Federal Reserve's policy meeting, set for release at 2 p.m. ET.

Among individual stocks, Loblaw L.TO lost 1.1% after the retailer said it plans to invest C$2.2 billion ($1.55 billion) to renovate existing stores, open new ones and create about 8,000 jobs this year.

Hudbay Minerals HBM.TO slumped 13.5% after the copper miner posted lower fourth-quarter profit.

FOR CANADIAN MARKETS NEWS, CLICK ON CODES:

TSX market report .TO

Canadian dollar and bonds report CAD/ CA/

Reuters global stocks poll for Canada EQUITYPOLL1, EPOLL/CA

Canadian markets directory CANADA

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