Canadian Market Poised for a Cautious Opening Amid Tariff Concerns

The Canadian stock market is expected to open on a flat to negative note on Tuesday as investors adopt a cautious stance ahead of U.S. President Donald Trump's announcement on reciprocal tariffs. Market participants are closely watching developments, given the potential impact on global trade and economic stability.

Trump is set to make his tariff announcement on Wednesday, an event he has labeled 'Liberation Day.' Unlike previous plans that targeted specific nations, the new tariffs are expected to be more comprehensive, affecting all countries. This move could trigger volatility across global markets, prompting investors to reassess their portfolios.

Key Corporate Developments

• Endeavour Silver Corp (EDR.TO) has finalized a definitive agreement to acquire Compania Minera Kolpa and its Huachocolpa Uno mine in Peru. The deal, valued at US$145 million, will be completed through a combination of cash and shares.

• Brookfield Asset Management (BAM.TO) has entered into a strategic agreement to acquire a majority stake in Angel Oak Companies. The acquisition aims to provide Brookfield's investors with access to residential mortgage credit strategies.

• Canopy Growth (WEED.TO) has made an early prepayment of US$100 million under its senior secured term loan at a discounted rate of US$97.5 million. This move is expected to generate annual interest savings of approximately US$13 million.

Economic Indicators & Market Trends

Investors will be keeping an eye on Canada’s manufacturing data for March, scheduled for release at 9:30 AM ET. The report is expected to provide insights into the industrial sector’s performance and could influence market sentiment.

On Monday, the Canadian market closed on a strong note, bolstered by gains in the consumer, energy, industrials, and financials sectors. The upbeat trend followed a broad recovery in global equities, particularly in Asian markets, which rebounded after experiencing sharp losses due to trade war concerns.

In European markets, stocks are trading firmly in positive territory, despite ongoing uncertainty surrounding Trump’s tariff plans. Investors are largely shifting their focus toward regional business data, seeking clues about economic resilience in the face of potential trade disruptions.

Commodities Outlook

In the commodities market, West Texas Intermediate (WTI) Crude oil futures have dipped slightly, trading at $71.39 per barrel, down $0.09. Meanwhile, gold futures have gained $7.00 or 0.23%, reaching $3,157.30 per ounce, while silver futures have slipped $0.031 or 0.09%, standing at $34.580 per ounce.

Market Outlook

As investors digest these developments, the Canadian stock market is likely to see choppy trading patterns, with focus on global economic cues, trade policies, and sector-specific earnings reports. While corporate deals and economic indicators offer potential support, uncertainty surrounding U.S. tariffs remains a key factor influencing market direction.