Canadian Stock Markets Take Hit Amid Trade Tensions

Toronto stock markets took a hit on Friday, despite Canada's economy showing signs of strength. The S&P/TSX composite index fell by almost 300 points to 36,553.92.

According to Carol Schleif, chief market strategist at BMO Wealth Management, trade tensions and the possibility of renewed tariffs are contributing to investor caution. 'I know that GDP was strong, but I think there are fears on both sides of the border about renewed tariffs or trade tensions,' she said.

The US Federal Reserve chair Kevin Warsh's comments at the Jackson Hole economic symposium also weighed on markets. He suggested that inflation is still too high in the US and may require higher interest rates to bring it down.

However, Schleif noted that the TSX is less affected by tariffs due to its composition, which includes miners and financials that are benefiting from a strong economy.