TSX Fails To Hold Gains, Slips Into Negative Territory

(RTTNews) - The Canadian market started off on a buoyant note on Tuesday as tensions about Trump's tariffs eased a bit amid optimism about negotiations that could help avoid a global trade war. However, stocks failed to hold gains and retreated with investors turning cautious and lightening commitments.

Trump has reaffirmed Washington's new tariff policy but signaled his willingness to engage in dialogue with countries seeking more favorable trade terms. He said on Monday he would talk to China, Japan and other countries over the tariffs, but was not looking at a pause on the duties.

"There could be permanent tariffs and there could also be negotiations... we're going to get fair deals and good deals with every country — and if we don't, we're going to have nothing to do with them," Trump said during a meeting with Israeli Prime Minister Benjamin Netanyahu.

However, there is still some uncertainty about any major shift in Trump's stance, as he has rejected the European Commission's offer proposing removal of tariffs on industrial goods as part of trade talks.

Materials, consumer staples and financials shares are among the prominent gainers. Healthcare, energy and communications stocks are weak.

The benchmark S&P/TSX Composite Index, which surged to 23,393.80 earlier in the session, gaining more than 530 points, pared its gains as the day progressed and was down 124.27 points or 0.54% at 22,735.19 a little while ago.

Wesdome Gold Mines, Kinaxis, Iamgold, Alamos Gold, SSR Mining, Air Canada, B2Gold Corp, Lundin Gold, Bombardier, New Gold, Open Text Corporation, Fairfax Financial Holdings, Agnico Eagle Mines, Bombardier, West Fraser Timber, Pan American Silver Corp, Brookfield Business Partners and Barrick Gold Corporation are up 2 to 5%.

Tilray is plunging more than 14%. Canopy Growth Corp is down 7.6% and Gran Tierra Energy is declining 6%.

Baytex Energy, Vermilion Energy, BCE, Corus Entertainment, BRP Inc., NuVista Energy, Precision Drilling, Cenovus Energy, Kelt Exploration, MEG Energy, Suncor Energy, Bausch Health Companies, Canada Goose Holdings, Canadian Natural Resources and Whitecap Resources are down 2 to 5%.

On the economic front, the Ivey Purchasing Managers Index in Canada eased to 51.3 in March 2025 from a seven-month high of 55.3 in February, missing market expectations of 53.2.