Canada's benchmark index looked set to open lower on Thursday, weighed down by falling commodity prices and by concerns over the escalating trade dispute between the US and China.
Action Economics ( AE ) said NYMEX crude fell to six-week lows, as a firmer US dollar and fallout from the EIA's reported surprise stock build on Wednesday continue to weigh on prices. Elsewhere, RBOB gasoline futures have slipped to two-week lows. Softer demand and lower crude prices have led to the slide.
Meanwhile, AE also said US President Donald Trump's threat to increase tariffs on China and China's threat to retaliate have weighed heavily on equities. The Trump administration confirmed that it is considering rising tariffs on $200 billion worth of Chinese imports, seen as a bargaining ploy by Trump ahead of Washington and Beijing's return to the negotiating table. China, however, returned fire by accusing the U.S. of blackmail, of which it will not respond to.
The TSX lost 57 points on Wednesday, dragged down by materials and techs.
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