Equities
Global markets slid as investors ducked for cover after the United States hit Canada, Mexico and China with steep tariffs, launching new trade conflicts with the top three U.S. trading partners.
Wall Street’s major indexes opened lower. The S&P 500 dropped 0.7 per cent to to 5,808.94, the Nasdaq fell more than 1 per cent to 18,125.54 points, and the Dow slid 0.9 per cent to 42,796.74 at the bell.
The Toronto Stock Exchange’s S&P/TSX composite index opened down 1.3 per cent at 24,678.06 under tariff pressures.
In Canada, investors are getting results from Pet Valu Holdings Ltd. and Baytex Energy Corp.
On Wall Street, markets are watching earnings from Target Corp., Best Buy Co., AutoZone Inc. and CrowdStrike Holdings Inc.
“The realization that the tariff threats will turn into reality hit sentiment, along with unideal ISM data showing that US manufacturing activity slowed more than expected in February while prices rose significantly faster than expected,” Ipek Ozkardeskaya, senior analyst at Swissquote Bank, wrote in a note.
“And there is no magic, the tariffs are about the make the inflation headache worse in the U.S. Rising inflation expectations reduce the Federal Reserve’s ability to ease policy to give support to slowing economy. And when the Fed is no longer there to save the market, bad news become bad news.”
Overseas, the pan-European STOXX 600 was down 1.75 per cent in morning trading. Britain’s FTSE 100 slid 0.94 per cent, Germany’s DAX dropped 2.77 per cent and France’s CAC 40 declined 1.86 per cent.
In Asia, Japan’s Nikkei closed 1.2 per cent lower, while Hong Kong’s Hang Seng slipped 0.28 per cent.
Commodities
Oil prices extended losses following reports that OPEC+ will proceed with a planned output increase in April and as markets braced for the start of U.S. tariffs on Canada, Mexico and China, as well as Beijing’s retaliatory tariffs.
Brent crude futures were down 1.8 per cent to US$70.35 a barrel, while West Texas Intermediate (WTI) crude was off 1.6 per cent to trade at US$67.27.
“The current downward trend in oil prices is primarily driven by OPEC+’s decision to increase output and the introduction of U.S. tariffs,” said Darren Lim, commodities strategist at Phillip Nova.
“While this [OPEC=] decision aims to gradually unwind previous output cuts, it has raised concerns about potential oversupply in the market,” he said.
In other commodities, spot gold was up 0.9 per cent at US$2,918.90 an ounce. Bullion has gained 10 per cent so far this year. U.S. gold futures gained 1 per cent to US$2,929.20.
Currencies and bonds
The Canadian dollar strengthened against its U.S. counterpart.
The day range on the loonie was 68.86 US cents to 69.40 US cents in early trading. The Canadian dollar was down about 0.89 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, fell 0.67 per cent to 106.04.
The euro rose 0.42 per cent to US$1.0533. The British pound gained 0.13 per cent to US$1.2717.
In bonds, the yield on the U.S. 10-year note was last up at 4.176 per cent.
Corporate news
Target has forecast full-year comparable sales below estimates, and said uncertainty around tariffs as well as consumer spending would weigh on first-quarter profits.
Best Buy has posted a surprise rise in quarterly comparable sales, as customers took advantage of holiday promotions to snap up high-end appliances and gaming consoles.
Economic news
Japan jobless rate, capital spending and consumer confidence
Euro zone jobless rate
(9 p.m. ET) U.S. president Donald Trump addresses joint session of Congress.
Also: B.C. budget
With Reuters and The Canadian Press