Canadian stock futures dipped on Wednesday as investors reacted to U.S. President Donald Trump’s latest tariff threats and awaited the release of the Federal Reserve’s January meeting minutes. The uncertainty surrounding trade policies and monetary decisions has heightened market caution, affecting global economic sentiment.
As of 6:11 a.m. ET (11:11 GMT), futures linked to Canada’s S&P/TSX index were down 0.37%, reflecting investor jitters over trade tensions and economic outlooks.
The Toronto Stock Exchange’s S&P/TSX composite index (.GSPTSE), however, ended Tuesday on a positive note, gaining 165.61 points (0.65%) to close at 25,648.84.
On Tuesday, Trump announced his intention to impose 25% tariffs on automobile imports, alongside similar levies on semiconductors and pharmaceuticals. This move adds to his already aggressive trade policy, which has seen a 10% tariff on all Chinese imports since he took office four weeks ago.
Additionally, he imposed a 25% tariff on Mexican goods and non-energy imports from Canada, though those measures were temporarily suspended for a month.
The escalation of trade tensions pushed gold prices to a record high, as investors sought safe-haven assets amid growing concerns over global economic stability.
Investors are also closely watching the Federal Reserve’s January meeting minutes, set for release at 2 p.m. ET. While the Fed decided to keep interest rates unchanged, Chair Jerome Powell signaled that rate cuts would only occur if inflation and employment data justified such action.
Market participants will be analyzing the minutes for clues on the Fed’s future policy direction and potential shifts in economic strategy.
Oil prices edged higher as markets reacted to potential supply disruptions in Russia and the U.S.. The ongoing conflict in Ukraine has fueled geopolitical uncertainty, with Washington actively working to mediate a resolution.