TSX Climbs Despite US Tariffs as Investors Digest New Trade Developments

Canada's main stock index, the TSX, rose on Monday despite new US tariffs imposed by President Donald Trump over the weekend. The S&P/TSX composite index gained 93.89 points to close at 36,714.12.

Adam Ludwick, director of asset allocation at NEI Investments, attributed the market's resilience to the fact that companies not directly affected by the tariffs are 'not seeing the same drawdown or risk-off sentiment.' He noted that Canadian industries like autos and textiles have taken a hit due to the new levies.

Ludwick added that investors are more concerned about how businesses will forecast their earnings over the next year or two, rather than individual stock performance. The Canadian dollar traded at 72.24 cents US on Monday, slightly down from its previous close of 72.67 cents US.

Meanwhile, Canada's big banks are set to report their third-quarter results this week, which could impact their share prices. Ludwick cautioned that these banks trade at a higher multiple than their US counterparts, and will need to justify this premium.