Futures linked to Canada’s main stock index traded lower on Monday, as investors gauged the impact of President Donald Trump’s threat of new tariffs on several European countries.
Track Canadian stocks with InvestingPro By 06:57 ET (11:57 GMT), the S&P/TSX 60 index standard futures contract had dipped by 11 points, or 0.6%.
The S&P/TSX composite index rose by 0.04% to 33,040.55 on Friday, notching a fresh all-time high. Since the beginning of the year, the average has climbed by 4.2%.
Trade remains a major issue for Canadian markets, particularly after Prime Minister Mark Carney announced an initial trade deal with China that signaled a revamping of a recently fraught relationship between the two countries.
But President Trump’s pledge to slap 10% tariffs on eight European countries until the U.S. is allowed to purchase Greenland has dampened sentiment, with analysts warning of a resurgence in the type of trade uncertainty which was pronounced throughout 2025.
U.S. futures lower
U.S. stock futures pointed lower on Monday. By 07:07 ET, the Dow futures contract had slid by 452 points, or 0.9%, S&P 500 futures had shed 81 points, or 1.2%, and Nasdaq 100 futures had dropped by 409 points, or 1.6%.
The main averages on Wall Street will be closed on Monday for Martin Luther King Jr. Day, delaying markets’ reaction to Trump’s latest tariff salvo. Risk-off sentiment has been prevalent globally, pulling down shares in Europe and Asia.
In a note, analysts at ING said Trump’s threat, which comes after the president slapped sweeping tariffs on countries around the world last year, has escalated trade tensions into “an entirely new dimension -- one driven less by economic logic and more by political motives.”
“The experience of the past 12 months has taught us not to overreact, as not all bold or dramatic announcements have ultimately been implemented. The uncomfortable truth, however, is that some of them have,” the analysts including Carsten Brzeski and Bert Colijn said.
Golds hits new record high
Gold prices surged to all-time highs, approaching $4,700 an ounce, as safe-haven demand surged after U.S. President Donald Trump threatened new tariffs on eight European nations over his push to acquire Greenland, a semi-autonomous Danish territory.
The countries targeted include Denmark, France, Germany, and the United Kingdom, along with several Nordic and northern European states.
Trump said a 10% tariff would take effect on Feb. 1, rising to 25% in June if no agreement is reached.
Media reports suggested that the European Union is preparing to halt a proposed EU-U.S. trade deal in response and may revive a E93 billion package of tariffs on U.S. goods, raising the prospect of a broader transatlantic trade dispute.
At 06:25 ET, spot gold rose 1.5% to $4,663.41 an ounce, after reaching a record high of $4,690.75/oz earlier in the session.
U.S. Gold Futures rose 1.6% to $4,668.71/oz after having hit a peak of $4.697.71 earlier in the session.
Silver prices also advanced over 5% to hit a new record high of $94.03/oz. The white metal has been buoyed not only by safe-haven demand but also by its dual role as an industrial material.
Oil falls
Oil prices declined, with risk sentiment dented by Trump’s threatened tariffs, a move which increases the prospect of a broader transatlantic trade dispute.
At 05:25 ET (10:25 GMT), Brent Oil Futures expiring in March fell 0.9% to $63.54 per barrel, and West Texas Intermediate (WTI) crude futures dropped 0.8% to $58.88 a barrel.
Crude prices had rallied at the start of last week on worries that unrest in Iran could disrupt oil supplies from the Middle East, a region that accounts for a significant share of global output.
But much of that premium faded after Trump said there would be no immediate U.S. military intervention, prompting a pullback in prices before they stabilized toward the end of the week.
