Canadian Market Remains Weak Despite Coming Off Early Lows

(RTTNews) - After plunging nearly 800 points or more than 3% in early trades on Monday, the Canadian market has staged a good recovery, but still remains firmly down in negative territory with several stocks from industrials, consumer discretionary and financials sectors reeling under sustained selling pressure.

The index was down 213.44 points or 0.84% at 25,319.66 a little while ago.

The market opened with a big negative gap and fell further as the Trump administration imposed 25% tariffs on Canadian imports, effective February 1. The order exempts energy, which will be subject to a 10% tariff.

After US President Donald Trump signed an executive order imposing 25% tariffs on almost everything imported from Canada, outgoing Canadian Prime Minister Justin Trudeau said Canada would respond in kind and impose 25% tariffs on more than $105 billion of U.S. goods.

The U.S. President has warned that the EU and the UK could be the next targets for the levy.

Canada and Mexico ordered retaliatory tariffs on American goods while China vowed countermeasures. The imposition on Mexico has now been postponed by a month following Trump's talks with the Mexican President. The EU also warned of firm retaliation if targeted.

Goeasy (GSY.TO), BRP Inc (DOO.TO), Magna International (MG.TO), Ag Growth International (AFN.TO), Cargojet (CJT.TO), Linamar Corporation (LNR.TO), Canadian Imperial Bank of Commerce (CM.TO), Canadian National Railway (CNR.TO), Canadian Pacific Kansas City (CP.TO), CCL Industries (CCL.A.TO) and Precision Drilling Corporation (PD.TO) are down 4 to 8.5%.

Bank of Nova Scotia (BNS.TO), TFI International (TFII.TO), EQB Inc (EQB.TO), Premium Brands Holdings (PBH.TO), Royal Bank of Canada (RY.TO), MTY Food Group (MTY.TO), Cameco Corporation (CCO.TO), Aritzia Inc (ATZ.TO) and Bombardier Inc (BBD.B.TO) are lower by 2 to 4%.

Metal stocks are up as bullion prices climbed higher on safe-haven demand. Among the gainers, Equinox Gold Corp (EQX.TO) is soaring10%. SilverCrest Metals (SIL.TO), Iamgold Corporation (IMG.TO), Pan American Silver Corp (PAAS.TO), Alamos Gold (AGI.TO), Aura Minerals (ORA.TO), Wesdome Gold Mines (WDO.TO) and Torex Gold Resources (TXG.TO) are up 3 to 6%.

On the economic front, a report from S&P Global said, the S&P Global Canada Manufacturing PMI fell to 51.6 in January, down from 52.2 a month earlier, signaling a slower expansion. The reading dropped for a fifth straight month.