Canada's TSX Dips as Oil Prices Soar Amid Tariff Worries
Canada's main stock index, the S&P/TSX Composite, fell 0.8% on Monday as base-metal stocks declined while energy shares rose with crude oil prices.
The increase in oil prices was driven by renewed US-Iran tensions, which revived fears of supply disruptions and shipping risks through the Strait of Hormuz, lifting West Texas Intermediate (WTI) crude 2.8% to $85.76 a barrel and Brent 2.6% to $90.38.
Economists are also concerned about the impact of higher US tariffs on Canada's growth outlook. KPMG Canada estimates that if the US tariff rate permanently rose to 7%, it could shave 0.3-0.5 percentage points off Canada's growth next year and reduce employment by 5,000-15,000 jobs.
This scenario implies softer growth and fewer jobs, which can weigh on the Canadian dollar if investors expect relatively lower interest rates or less foreign money flowing into Canada.