The Toronto Stock Exchange is up 150 points at midday, having lost more than 500 points over the previous two days. The Bank of Canada cut rates and the Canadian federal government detailed near $30 billion in retaliatory tariffs to help it fight a trade war with the United States after U.S. President Donald Trump just after midnight put 25% import levies on steel and aluminum against all countries, including Canada.
Most sectors are higher at midday, with energy (+1.7%) and info tech (+1.7%), leading, while telecoms, down 1.4%, is the biggest decliner.
The Bank of Canada as expected cut its policy rate by 25bps to 2.75%, noting that trade tensions with the U.S. will likely slow the pace of economic growth and increase inflationary pressures.
Veteran market watcher David Rosenberg noted while being mindful of the initial inflationary impact from the trade war, the Boc seems more focused on the downside macro risks. So, he said, the…
