Bay Street Likely To Open Notably Lower

(RTTNews) - Canadian shares look headed for a gap down opening on Monday, tracking a sell-off in global markets amid rising fears of a global trade war and recession after China reacted strongly to U.S. President Donald Trump's sweeping tariffs on goods imported into the U.S.

UK Prime Minister Keir Starmer spoke with international leaders at the weekend to discuss the repercussions and future course of action in the wake of reciprocal tariffs announced by the United States.

In separate calls Sunday, Starmer spoke with Canadian Prime Minister Mark Carney, European Commission President Ursula von der Leyen, German Chancellor Olaf Scholz and leader of the German Christian Democratic Union party Friedrich Merz.

They all agreed that as with defence and security, this is a new era for the global economy. Europe must rise to meet the moment and ensure the impact on hard-working people is minimized, while working closely with other countries to help maintain wider economic stability, says a statement issued by the UK Prime Minister's Office.

During the call between Starmer and Canadian PM Mark Carney, the leaders discussed their commitment to working together to maintain global economic stability in the wake of the announcement from U.S. President Donald Trump.

In corporate news, the Bank Of Nova Scotia announced a $3 million community investment in Atlantic Canada to support local communities through partnerships with non-profit organizations.

Canadian stocks ended sharply lower on Friday, adding to the steep losses posted in the previous session. After plunging by 3.8% on Thursday, the benchmark S&P/TSX Composite Index plummeted 1,142.30 points or 4.7% to a nearly seven-month closing low of 23,193.47.

The continued sell-off on Bay Street came amid ongoing concerns about a global trade war after China announced retaliatory tariffs on U.S. goods in reaction to President Donald Trump's new levies.

Asian stocks plummeted on Monday as a global sell-off deepened and investors fled to the relatively safe haven assets such as bonds, the Japanese yen and the Swiss Franc on signs that the Trump's administration is unlikely to soften its sweeping tariff regime.

European stocks are down sharply today amid growing fears of a global recession due to the tariff war. The U.K.'s FTSE 100, Germany's DAX and France's CAC 40 are down 4.7 to 5%, despite coming of early lows.

In commodities trading, West Texas Intermediate Crude oil futures are down $1.70 or 2.74% at $60.29 a barrel.

Gold futures are gaining $12.50 or 0.43% at $3,047.90 an ounce, while Silver futures are up $0.865 or 2.95% at $30.095 an ounce.