TSX ends slightly lower as Trump tariff threat hits sentiment
TSX ends down 0.02% at 25,405.14
Energy falls 2.3%; oil settles 0.2% lower
Bombardier shares lose 9.3%
Technology advances 1.1%
Updates at market close
By Nikhil Sharma and Fergal Smith
Nov 26 (Reuters) -Canada's stock market inched lower on Tuesday, weighed by declines for energy, railroad and auto parts manufacturing shares, after U.S. President-elect Donald Trump vowed to impose big tariffs on top trading partners, including Canada.
The S&P/TSX composite index .GSPTSE ended down 5.21 points, or 0.02%, at 25,405.14, its second straight day of modest declines after posting a record closing high on Friday.
Trump on Monday pledged big tariffs on the United States' three largest trading partners - Canada, Mexico and China - in a move that helped push the Canadian dollar to a 4-1/2-year low against its U.S. counterpart.
"Tariffs dump sand in the gears of the global economy and markets hate them," Colin Cieszynski, chief market strategist at SIA Wealth Management, said in a note.
Officials from Mexico, Canada and China warned that Trump's tariff threat would harm the economies of all involved.
"These types of threats are mostly designed to extract concessions," said Angelo Kourkafas, investment strategist at Edward Jones Investments, adding they are, however, "impacting sentiment in the short term."
Canada sends about 75% of its exports to the United States, including oil. Trump's plan does not exempt crude oil from trade penalties, two sources familiar with the plan told Reuters.
U.S. crude futures CLc1 settled 0.25% lower at $68.77 a barrel after Israel agreed to a ceasefire deal with Lebanon, while the Toronto market's energy sector was down 2.3%.
Industrials fell 1%, weighed by declines for railroad shares. Automotive suppliers also lost ground, with Magna International Inc MG.TO falling 4.7%. Business jet manufacturer Bombardier Inc BBDb.TO lost 9.3%.
The TSX is set to rise in 2025 but returns could slow after investors potentially front-loaded much of the positive news, a Reuters poll found.
Helping to limit the decline on Tuesday, technology rose 1.1% and financials added 0.5%.
Reporting by Fergal Smith in Toronto and Nikhil Sharma in Bengaluru; Editing by Maju Samuel and Shreya Biswas
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