Canadian Shares Face Downturn Amid Trade War and Tariffs

Canadian stocks expected to open negatively as trade tensions escalate. Canada retaliates with tariffs on US goods, impacting investor sentiment and market performance.

Date: 04-03-2025

AI Rating: 4

Trade tensions escalate: The report indicates that Canadian stocks are expected to open with a negative bias due to escalating trade tensions following the implementation of new tariffs by the U.S. on Canadian and Mexican imports. This kind of market reaction can heavily affect companies reliant on cross-border trade, leading to potential volatility in their stock prices.

Wajax Earnings Report: Wajax (WJX.TO) reported a significant decline in net earnings for the fourth quarter, down to C$1.0 million or C$0.05 per share from C$11.1 million or C$0.52 per share in the previous year. This decline reflects a deterioration in profitability, which could lead to a negative impact on investor perceptions and stock prices.

Enbridge Financial Guidance: Enbridge (ENB.TO) reaffirmed its financial guidance for 2025 with adjusted EBITDA projected between C$19.4-C$20 billion, and DCF per share of C$5.50-C$5.90. The company also indicated a positive outlook for average annual earnings growth. This optimistic guidance can support stock price stability or growth, as investors generally respond favorably to positive earnings outlooks.

Pet Valu Holdings Revenue Growth: Pet Valu Holdings (PET.TO) reported fourth-quarter revenue of $295.1 million, marking a 2.9% increase from $286.9 million a year ago. This revenue growth could instill investor confidence, possibly leading to a positive impact on stock performance for this company.

Overall, the bearish sentiment in Canadian markets, highlighted by heavy selling in various sectors, and the backdrop of the trade war could create a challenging environment for the stock prices of affected companies.

Stocks: WJX.TO ENB.TO PET.TO