09.09.202620:21:23UTC+00TSX Closes Lower on Trade War and Inflation Concerns

The S&P/TSX Composite Index slipped 0.6% to close at 35,907 on Wednesday after the United States broadened trade restrictions against Canada. Washington barred imports of a range of alcoholic beverages, motorcycles, and dairy products, following last month’s move to impose 50% tariffs on roughly $20 billion of Canadian exports and Ottawa’s subsequent retaliatory measures. In the food sector, Saputo eased 0.7%, Canada Packers dropped 3.1%, and BRP declined 4%.

Heightening tensions in the Middle East drove oil prices higher, reviving inflation concerns ahead of Friday’s release of US CPI data. Financials came under pressure as expectations for further interest rate hikes increased: Royal Bank of Canada and TD Bank each fell 0.9%, Bank of Montreal lost 1.3%, and CIBC shed 1.5%.

Mining stocks benefited from stronger gold prices, with Agnico Eagle up 0.7%, Barrick Gold gaining 1.2%, and Wheaton Precious Metals advancing 1.4%. Lithium Americas surged 6.5% after J.P. Morgan initiated coverage with an “overweight” rating.