The Art Deco facade of the original Toronto Stock Exchange building is seen on Bay Street in Toronto, Ontario, Canada January 23, 2019. REUTERS/Chris Helgren/File Photo Purchase Licensing Rights, opens new tab
Jan 20 (Reuters) – Canada’s main stock index climbed to a five-week high on Monday ahead of Donald Trump’s inauguration as U.S. president, with markets expecting the incoming administration to go easy on tariff pledges.
The Toronto Stock Exchange’s S&P/TSX composite index
was up 0.6% at 25,217.78, and was trading at its highest since Dec. 16.
U.S. markets were closed for Martin Luther King Jr. Day, keeping trading volumes lighter than usual.
Donald Trump will be sworn in as U.S. president at 12:00 p.m. ET in a highly anticipated global event, with particular focus on the slew of executive actions concerning immigration, energy and tariffs that he has pledged to sign on day one.
Giving some relief to investors, a Wall Street Journal report said Trump will stop short of imposing new tariffs on key trading partners on his first day in office.
“Not everything that he (Trump) said has come to play out exactly as he commented or as the rhetoric has suggested,” said Josh Sheluk, portfolio manager at Verecan Capital Management.
“He understands that blanket 25% tariffs on everything would be probably very problematic or maybe catastrophic for economies, including the U.S.”
All major sectors on the index logged gains. Industrials
led the charge, adding 1.2%, with business jet maker Bombardier
jumping 6.2% to the top of the TSX.
Heavyweight energy
advanced 1.1%, while materials
added to the gains with a 0.6% jump.
Meanwhile, the Canadian dollar was trading 1.3% higher against the U.S. dollar, on track for its best day in over two years.
Canada has been at the epicenter of Trump’s tariff threats, as he pledged to impose a 25% tariff on imports from the country, a key trading ally that sends a majority of exports across the border.
Among other stocks, Kits Eyecare
rose 2.3% after the eyecare provider reported 42% growth in its fourth-quarter revenue.
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Reporting by Nikhil Sharma in Bengaluru. Editing by Tomasz Janowski and Mark Potter
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