Canadian Stocks Fluctuate Amid Trade War Concerns

Canadian shares are volatile as trade war fears grow. The cautious tone from investors, alongside potential political changes, creates uncertainty in the market.

Date: 20-03-2025

AI Rating: 5

**Market Activity**: Canadian stocks are experiencing fluctuations as indicated by the S&P/TSX Composite Index, which was down by 0.05% at 25,057.00. The index faced a significant negative gap and encountered resistance at higher levels.

**Sector Performance**: Notably, some companies like Celestica Inc. and MDA Space have shown positive growth, with increases of 4.3% and 4.2%, respectively. Meanwhile, others such as CGI Inc. and BRP Inc. are struggling, seeing declines of 4.5% and 4.4%.

**Economic Indicators**: The report mentions that the industrial product price index saw a month-over-month growth of 0.4% in February and a year-over-year increase of 4.9%. This growth indicates a tightening inflationary landscape and could impact profit margins for companies reliant on these prices.

The Raw Materials Price Index also showed an increase, with a 0.3% month-over-month rise in February and a year-over-year rise of 9.3%. This signifies maintaining pressure on costs for raw materials, which can further affect companies’ operating margins.

Investors are advised to closely monitor these indicators as they can significantly influence the profitability and earnings outlook for various sectors.

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