Bay Street Looks Headed For Positive Start

(RTTNews) - Canadian shares may open higher Wednesday morning, tracking positive global cues following U.S. Commerce Secretary Howard Lutnick's comments that the Trump administration was considering easing the 25% tariffs on Canadian and Mexican imports to products which comply with the trade pact negotiated during Trump's first term.

Data on Canadian Composite PMI and Services PMI for the month of February is due at 9:30 AM ET.

Fourth quarter labor productivity data is due at 8:30 AM ET.

NuVista Energy (NVA.TO) reported net earnings of $99.15 million for the quarter ended December 31, 2024, compared to $89.51 million in the year-ago quarter.

VersaBank (VBNK.TO) reported net income of C$8.14 million for the quarter ended 31 January 2025, compared with net income of C$5.5 million in the corresponding quarter last year.

The Canadian market ended sharply lower on Tuesday, hurt by heavy selling in several sectors amid concerns about growth as new tariffs by U.S. against Canada, China and Mexico took effect, and Canada and China announced retaliatory measures.

After the Trump administration's tariff moves, Canada retaliated by announcing 25% tariffs on $107 billion worth of U.S. goods, with $20.7 billion in immediate effect. Mexican President Claudia Sheinbaum said her country is preparing countermeasures.

China announced 15% tariffs on U.S. chicken, wheat, corn and cotton, plus 10% cent tariffs on soybeans, pork, beef and dairy beginning March 10.

U.S. President Donald Trump reiterated that he will impose reciprocal duties with effect from April 2, and the first target will be a levy on agricultural products.

The benchmark S&P/TSX Composite Index, which tumbled to 24,344.84 around late morning, losing more than 650 points in the process, ended the session with a loss of 429.57 points or 1.72% at 24,572.00.

Asian stocks ended mixed on Wednesday as the Trump administration indicated flexibility on some of its latest tariff measures against Canada and Mexico, and investors watched the latest developments of China's annual political gathering.

China's Shanghai Composite index rose 0.53% as the government unveiled an annual economic growth target of around 5% and announced plans to boost domestic consumption and support the economy, given the broadening global uncertainty.

European stocks are up with strong gains amid optimism that U.S. President Donald Trump's 25% duties on Canada and Mexico could be relaxed. News about German leaders agreeing to create 500 billion euros infrastructure spending is also contributing to the positive mood in European markets.

In commodities, West Texas Intermediate Crude oil futures are down $0.89 or 1.3% at $67.37 a barrel.

Gold futures are gaining $8.00 or 0.28% at $2,928.60 an ounce, while Silver futures are up $0.574 or 1.77% at $32.955 an ounce.