FX.co ★ Bay Street Likely To Open On Weak Note

Canadian stocks are anticipated to open lower on Tuesday morning, reflecting declining prices in crude oil and metals. Although the United States has agreed to delay the imposition of tariffs on Canada and Mexico for one month, market sentiment is expected to remain cautious.

On Monday, the Canadian market experienced a significant downturn due to a sharp sell-off. This followed U.S. President Donald Trump's decision to implement a 25% import tariff on all Canadian goods, excluding energy products. Nevertheless, stocks managed to recover from their initial lows after Trump opted to defer tariffs on Mexico for a month following discussions with the Mexican President. Despite this recovery, the Canadian market concluded the session on a weaker note.

In response to President Trump's executive order imposing tariffs on nearly all Canadian imports, outgoing Canadian Prime Minister Justin Trudeau announced that Canada would respond reciprocally, implementing 25% tariffs on over $105 billion of U.S. goods. The U.S. President also indicated that the European Union and the United Kingdom could soon face similar tariffs. The decision to impose tariffs on Mexico has been postponed by one month after Trump's meeting with the Mexican President, while the EU has cautioned that it would firmly retaliate if targeted.

The S&P/TSX Composite Index witnessed a significant drop, plummeting nearly 800 points to a low of 24,742.92 during early trading sessions, eventually closing the day down by 291.34 points or 1.14% at 25,241.76.

In Asia, stocks surrendered some early gains but still ended higher on Tuesday. This came after China swiftly retaliated against a 10% trade duty imposed by the Trump administration on Chinese goods, effective as of midnight Eastern Time. China's Finance Ministry declared a 15% duty on U.S. imports of coal and liquefied natural gas, along with an additional 10% duty on imports of crude oil, agricultural equipment, and automobiles from the U.S., effective February 10. Additionally, China's Commerce Ministry has enforced export controls on tungsten, tellurium, molybdenum, bismuth, and indium, citing national security interests. China remains a leading producer of rare earths and other exotic materials.

European stocks are displaying a mixed performance amidst continued caution over global economic growth concerns, stemming from the United States' fresh tariffs on imports from key trading partners.

In the commodities market, West Texas Intermediate crude oil futures have fallen by $1.60 or 2.19%, priced at $71.56 per barrel. Gold futures have declined by $9.10 or 0.31% to $2,848.00 per ounce, and silver futures are down by $0.161 or 0.49% at $32.365 per ounce.