CLOSING BELL: Markets mostly overcome steep early losses as potential trade war looms
It was yet another seesaw day on the markets as Bay Street and Wall Street tanked early but both managed to claw back from most of those losses.
Reaction to Gary Cohn’s resignation, who was the White House’s top economic advisor, coupled with ongoing concerns over a potential trade war are to blame for the early sell-off on the markets.
The TSX managed to close down 72 points at 15,472.
White House Spokesperson Sarah Sanders said today tariffs on steel and aluminum should be announced by the end of the week, but that Canada and Mexico could get an exemption based on “national security”.
That announcement bolstered investors and helped the Dow Jones pull up from triple digit losses to end the day at 24,801, a loss of 82 points.
Uncertainty over those tariffs led the Bank of Canada to hold its key interest rate to 1.25 per cent today, saying it’s being cautious over any further increases this year.
The loonie is still taking a beating in the uneasy atmosphere of NAFTA negotiations and a possible trade war. At presstime it’s down just over a tenth of a cent to 77.49 cents U.S., oil is down $1.20 to $61.40 U.S per barrel and gold is down $8.60 to $1326.60 an ounce.