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TSX falls as US tariffs loom in the distance

TSX falls as US tariffs loom in the distance

The main Canadian stock index dropped on Wednesday. Losses in the tech sector were a major factor, but markets were also affected by uncertainty over new U.S. Tariffs that are set to go into effect next week.

The S&P/TSX Composite Index of the Toronto Stock Exchange was down by 0.2% to 25,294.11. In the previous session, the benchmark index closed at its highest level for a month.

The markets rallied two days in a row after U.S. president Donald Trump suggested on Monday that some trade levies will not be implemented by April 2, with certain countries being exempted, though details were scarce.

Angelo Kourkafas is an investment strategist with Edward Jones Investments. He said that investors will be focusing on headlines on what could be announced on 2 April.

"We still have to deal with some volatility and uncertainty. But the peak of uncertainty could be behind us, if we can get more clarity by April 2.

Information technology fell 2.1% on TSX. This was the largest drop among all sectors. It mirrored the declines seen in the Nasdaq, which is dominated by tech stocks, amid choppy trade. Celestica, a provider of electronic manufacturing services, was the biggest loser in TSX with a 7% drop.

The healthcare and materials sectors both fell by 2.4% and 1.1% respectively.

Energy stocks kept losses in check as they rose 1.2% as oil prices rose on the back of supply concerns following the latest attempts by the Trump Administration to curtail Venezuelan exports as well as an unexpected drop in U.S. Crude inventories.

First Quantum Minerals' stock dropped by 5.5% after Panama refused to allow visits to its closed Cobre Panama mine. (Reporting by Ragini Mathur and Sanchayaita Roy in Bengaluru; Editing by Shilpi Majumdar)

(source: Reuters)