Canadian Stocks Rise Sharply As PM Shifts Gears To Lift Economy

(RTTNews) - Canadian stocks moved sharply higher on Thursday as Prime Minister Mark Carney addresses the challenges confronting the economy from the US and hinted at measures to save domestic businesses.

After opening well above yesterday's close, the benchmark S&P/TSX Composite Index moved further into positive territory and reached an intra-day high of 27,422.42 before finally settling at 27,386.93, up by 233.96 (or 0.86%). This is a fresh record for the index.

Last week, accusing the Canadian government of failing to check illicit drugs entering into the US via US-Canadian borders, US President Donald Trump announced a 35% tariff on Canada's imports into the US.

This came as a shocker as, earlier in June, PM Mark Carney had stated that both governments were negotiating to reach a good trade deal.

In response to Trump, PM Carney reassured the nation that all steps would be taken to protect the interests of the labor force and businesses. Days before, he conceded that some tariffs set by the US would still remain even if a trade deal is signed.

Canada's aluminum and steel sector have borne the brunt of sector-specific tariffs imposed by Trump. Notably, about 75% of Canadian exports go to the US.

Yesterday, Carney assured he plans to crack down on cheap, foreign steel entering Canada by the end of the month as the domestic industry is under duress due to Trump's tariff. He is gearing up to clamp down on steel from partners who have Free Trade Agreements with Canada, except US and Mexico. Canadian steel makers have long complained of foreign companies dumping steel into Canada at ultra-low prices, making it difficult for local players to compete.

Separately, the government is looking "away from US" to find new marketplaces for their exports, and the foreign minister is scheduling trips in the coming months to sign bilateral trade agreements.

On the data front, the Canadian Federation of Independent Business Barometer long-term index rose 3.4 points to 50.9. The yield on two-year bond eased to 2.81% today, marking a 0% decrease from the previous session.

In the US, jobs data revealed a positive trend indicating a strong labor market. This has drowned the expectations for an interest rate cut by the US Federal Reserve, anytime sooner.

Major sectors that gained in today's trading were IT (2.48%), Consumer Discretionary (1.76%), Consumer Staples (1.39%), and Financials (1.02%).

Among the individual stocks, Shopify Inc (6.15%), Sylogist Ltd (4.43%), Coveo Solutions Inc (4.39%), and Gildan Activewear Inc (5.65%) were the prominent gainers.

Major sectors that lost in today's trading were Industrials (0.07%), Utilities (0.04%), Materials (0.30%), and Communication Services (0.43%).

Among the individual stocks, Superior Plus Corp (8.33%), Hydro One Ltd (1.78%), Rogers Communications (1.17%), and Hudbay Minerals Inc (2.74%) were the notable losers.

Energy Fuels Inc (11.44%) and Alimentation Couche-Tard (8.31%) were among the market-moving stocks today.