By Fergal Smith
(Reuters) -Canada’s main stock index steadied on Thursday as an expanding global trade war discouraged investors from making new bets on the market, with gains for gold miners offsetting losses for auto parts and technology shares.
Toronto Stock Exchange’s S&P/TSX composite index ended unchanged at 25,161.06, after posting on Wednesday its biggest decline in nearly two weeks.
Canadian Prime Minister Mark Carney said that he would respond with unspecified trade actions if U.S.
President Donald Trump imposes new auto tariffs that have expanded a global trade war. Trump on Wednesday unveiled a 25% tariff on imported vehicles.
Tariffs have “caused a lot of uncertainty and led to investors sitting on their hands,” said Greg Taylor, a portfolio manager at Purpose Investments.
“Gold has been a big winner in this environment and that speaks to the uncertainty that we’re seeing.”
The price of gold scaled a record peak as investors flocked to the safe-haven asset.
The materials sector, which includes gold mining shares, added 1.7%, taking its gain since the beginning of the year to roughly 21%, the best performance by far among the TSX’s 10 major sectors.
Shares of auto parts company Magna International Inc fell 6.9%, approaching the near four-year low it hit earlier this month.
Linamar Corp shares were down 2.7%
Technology was also a drag, losing 1.1%, and heavily weighted financials ended 0.3% lower.
Royal Bank of Canada will look to expand its foothold in capital markets and wealth management globally, CEO Dave McKay said, setting the stage for fiercer competition with its peers on Wall Street.
Shares of the bank were down 1.3%.
(Reporting by Fergal Smith in Toronto and Sruthi Shankar and Sanchayaita Roy in Bengaluru; Editing by Sahal Muhammed and Deepa Babington)
