Investing.com -- Canada’s main stock exchange moved higher on Tuesday, as investors gauged the results from parliamentary elections and its potential impact on Ottawa’s trade negotiations with U.S. President Donald Trump.
By 12:15 ET, the S&P/TSX 60 index had risen by 2.4 points, or 0.2%.
Toronto Stock Exchange’s S&P/TSX composite index rose by 24 points or 0.1% on Tuesday. The index gained 88.1 points, or 0.4%, in the prior session, climbing into positive territory for the year. The average has been bolstered by hopes of an easing in global trade tensions.
Canada’s Liberals, led by current Prime Minister Mark Carney, secured a victory over Pierre Poilievre’s Conservatives on Monday. It marked the culmination of a comeback for the Liberals, who have been boosted in polls by widespread outrage over Trump’s aggressive rhetoric towards Canada.
Along with slapping tariffs on the U.S.’s northern neighbor, Trump has suggested that he could attempt to annex Canada and turn it into the 51st U.S. state. Canadians are shunning U.S. goods and avoiding trips to the country in response.
Both Carney and Poilievre vowed to take a tougher stance with Trump, while investors have viewed both of the governments as offering a more business-friendly environment.
U.S. stocks steadily higher
U.S. stock indexes edged higher Tuesday, as investors cautiously awaited key economic data releases and first-quarter earnings from mega-caps including Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN), and Microsoft Corporation (NASDAQ:MSFT).
By 12:15 ET, the Dow jumped 289 points or 0.7%, the S&P enjoyed a 17.5 point or 0.3% increase, and the Nasdaq Composite was up 25.8 points or 0.2%.
The major Wall Street indexes saw a choppy session on Monday, with the Dow Jones Industrial Average and S&P 500 eventually ending slightly higher and the NASDAQ Composite closing fractionally lower, as investors digested the latest comments on tariffs from U.S. Treasury Secretary Scott Bessent.
In an interview with CNBC on Monday, Bessent said many countries have offered "very good" tariff proposals to the U.S.
He also stated that all aspects of the U.S. government are in contact with China and that it is up to China to de-escalate the situation. This came after Beijing earlier denied that any talks occurred.
Additionally, the Wall Street Journal reported that U.S. President Donald Trump is tipped to partially ease the effect of his tariffs on autos, blocking duties on cars made overseas from stacking on top of broader levies he has imposed.
In Tuesday’s earnings, General Motors Company (NYSE:GM) stock fell despite the auto giant reporting first-quarter earnings and revenue that topped analyst expectations, as it suspended its guidance and froze share buyback program in response to new Trump tariffs.
Coca-Cola Co (NYSE:KO) stock rose despite reporting a drop in Q1 revenues, while United Parcel Service Inc (NYSE:UPS) declined on tariff concerns, even though results outpaced analyst expectations.
Crude slips
Oil prices fell as traders continued to fret over the economic outlook, given the ongoing global trade war, as well as scheduled increased supply.
By 12:25 ET, Crude Oil WTI Futures dropped 2.5%, pricing in at $60.52 per barrel. Brent Oil Futures fell 2.3% to $63.30 a barrel.
Crude was also pressured by Russia unexpectedly announcing a three-day ceasefire with Ukraine, which could help pave a path towards a bigger agreement.
An OPEC+ meeting is also scheduled for next week, where the cartel is widely expected to increase production for a second consecutive month.
Gold dips
Gold prices slipped on Tuesday, after the WSJ reported that the Trump administration is planning to ease the impact of auto tariffs.
In an interview with CNBC on Monday, Treasury Secretary Scott Bessent said many countries have offered "very good" tariff proposals to the U.S. He also stated that the Washington is in contact with China and that it is up to Beijing to de-escalate the situation.
By 12:25 ET, Gold Futures dropped 0.6% to $3,327.79/oz, while XAU/USD lowered by 0.8% at $3,318.08 per ounce.
Investors were also cautiously awaiting U.S economic indicators this week, which will include the Fed’s preferred inflation metric -– the PCE price index.