On March 6, futures linked to Canada's primary stock index dipped, reflecting persistent trade tensions despite some relief on U.S. tariffs. The S&P/TSX index futures were down by 1% at 6:30 a.m. ET (1130 GMT), following a 1.2% increase in the S&P/TSX composite index during the previous session.
U.S. President Donald Trump granted automakers a one-month exemption from his strict tariffs on Canada and Mexico, provided compliance with the terms of an existing free-trade agreement. Trump emphasized that his 25% tariffs on Canadian and Mexican imports remain in place to address fentanyl smuggling concerns.
Oil prices stabilized on Thursday after a slight recovery from multi-year lows, with Brent still below $70 due to ongoing trade tensions and OPEC+'s production hike plans. Gold prices dropped as investors secured profits following a three-day surge, while copper prices reached a nearly three-week peak thanks to a significant U.S. dollar retreat and expectations of increased Chinese stimulus.
The forthcoming U.S. weekly jobless claims report, preceding Friday's crucial U.S. payrolls data, will be pivotal in evaluating the economy's status. Traders anticipate the U.S. Federal Reserve might initiate its first interest-rate cut of the year in June, whereas the Bank of Canada is anticipated to lower its benchmark rate by a quarter-point next week.
Later in the day, investors will scrutinize Canada's trade information. In corporate updates, oil and gas enterprise Canadian Natural Resources experienced a decline in fourth-quarter profits due to reduced commodity prices overshadowing production growth.