Canadian stocks edged lower on Monday as investors took to profit taking from the gains made over previous three sessions, while fresh U.S. tariff threats dampened investor sentiments. Momentum in gold-linked stocks limited the index moving further downside.
After opening above the previous week's close, today the benchmark S&P/TSX Composite Index gave away earlier gains and traded below the flatline before settling at 33,093.32, down by 51.66 points (or 0.16%).
Four of the 11 sectors posted gains today, with the materials sector leading the pack.
On Friday, Canadian stocks extended the gains from previous two sessions. Today, investors resorted to book profits from the recent gains.
On Saturday, U.S. President Donald Trump threatened to impose 100% tariffs on goods imported from Canada if Canada goes ahead with a free trade deal with China.
Trump also stated that he cannot allow Canada to become a "drop-off port" for China to send goods and products into the U.S.
Canada's Prime Minister Mark Carney responded to the threats stating that Canada has "no intention" of pursuing any free-trade agreement with China and that he remains committed to the Canada-United States-Mexico free trade agreement.
Recently, Carney embarked a four-day visit to China where he met with China's President Xi Jinping to reset the strains in their bilateral ties.
Carney is scouting for non-U.S. marketplaces for Canadian exports suffering from the Trump administration's hostility to Canada.
First, Trump imposed 35% tariffs on Canadian imports, then halted all the trade talks with Canada, and finally hinted that the U.S. would walk out of the CUSMA deal when it comes up for renewal later this year.
Last week, at the World Economic Forum in Davos, Carney criticized American hegemony and the tariff war.
Trump responded stating that Canada lives because of the U.S. and the several freebies Canada receives from the U.S.
Again, Carney disagreed with Trump and stated that Canada lives not because of the U.S.
Trump also rescinded his invitation to Carney to join his "Board of Peace," an organization established by Trump to promote peacekeeping.
After this Carney-Trump verbal spat, experts were concerned about further deterioration in the U.S.-Canada bilateral tries.
In the Middle East, after the Iranian regime unleashed violence and killed several protestors who took to streets against the government, Trump ordered more U.S. naval forces to head to Iran. Iran announced that they are fully prepared to face the U.S. threat.
The possibility of a U.S.-Iran war moved traders to safe-haven investments and a rise in gold-linked stocks.
On the economic front, there were no releases scheduled for today.
The Bank of Canada is set to announce its new interest rates on Wednesday. Economists expect the central bank to hold the policy rates at the current 2.25%, based on the recent economic data.
The recent Bank of Canada's Business Outlook Survey, conducted in the last quarter of 2025 indicated that business sentiments are subdued though the fears of a recession have decreased.
Major sectors that gained in today's trading were Materials (0.85%), Energy (0.45%), IT (0.42%), and Utilities (0.38%).
Among the individual stocks, Novagold Res Inc (5.53%), Ivanhoe Mines Ltd (4.48%), Eldorado Gold (4.45%), and Enerflex Ltd (2.88%) were the prominent gainers.
Major sectors that lost in today's trading were Real Estate (0.88%), Consumer Discretionary (0.95%), Consumer Staples (1.19%), and Healthcare (1.46%).
Among the individual stocks, First Capital REIT Units (2.72%), Dream Industrial REIT (2.70%), Curaleaf Holdings Inc (5.14%), and Alimentation Couche-Tard Inc (1.82%) were the notable losers.
For comments and feedback contact: editorial@rttnews.com
Market Analysis
April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.