MID-DAY: Tariff troubles drag down DOW and TSX; BoC keeps interest rate at 1.25 per cent
Troubles in the White House are rippling into Wall Street. The Dow opened 1 per cent lower after Donald Trump’s economic adviser announced his resignation. Reports say Trump’s tariff threats against imported steel and aluminum were the catalyst. The Dow is down 173 points to 24,710. The threat of a trade war is also weighing on the TSX which has slumped to 15,539.
Canada’s central bank had a cautionary tone over the trade troubles saying it will keep the interest rate at one and a quarter per cent for the time being. Analysts believe this pull back could lead to just one more interest rate hike this year to end 2018 off at 1.5 per cent.
The battered Loonie continues to struggle against trade war and NAFTA trouble concerns. The Canadian currency is down to 77.47 cents US.
The price of oil has dipped to 61.80 a barrel.
Gold is down to 1,331 an ounce.