Bay Street is growing, but a growing North American trade spat is starting to weigh on investors’ minds.
The TSX is up 65 points to 16,117 with help from growth in the materials sectors. However, across the border on Wall Street, the Dow is down to 24,785. This comes as Mexico is threatening a 20 per cent tariff on US pork imports in retaliation against steel and aluminum tariffs. Reports suggest Donald Trump may try to ease tensions with the country’s bordering nations by holding separate NAFTA talks with Canada and Mexico. Trump is likely to face opposition as he meets with six angry world leaders at the G7 Summit in Quebec on Friday.
The price of crude continues to slide as the US has reportedly asked Saudi Arabia to increase output to offset demand. US crude is dropping to 64.67 a barrel.
Starbucks is taking a hit as company’s executive chairman announced he is stepping down from his role, with some reports suggesting he may be eyeing a presidential run. Starbucks stock is down 2.5 per cent to 55.65.