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21 hours ago
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Canada’s stock markets should outperform after avoiding the worst of US President Donald Trump’s tariffs, Scotiabank says.
Author of the article:
Bloomberg News
Geoffrey Morgan
Published Apr 03, 2025 • 1 minute read
![9rn(jnhb]e9s7f{awtghdigs_media_dl_1.png](https://smartcdn.gprod.postmedia.digital/financialpost/wp-content/uploads/2025/04/canadian-stocks-beating-us-peers.jpg?quality=90&strip=all&w=288&h=216&sig=k7yy08LkpdPcpseN49l-eg)
(Bloomberg) — Canada’s stock markets should outperform after avoiding the worst of US President Donald Trump’s tariffs, Scotiabank says.
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Scotia Capital Inc. gave Canadian equities a double upgrade to overweight from underweight Thursday morning, with analysts including Hugo Ste-Marie saying both Canada and Mexico have “dodged the bullet” in the escalating trade war.
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“While that’s positive for Canada and Mexico, we view the announcement negatively for the US and rest of world, which will suffer heavy tariffs,” the analysts wrote.
The bank hit US equities with a double downgrade to overweight from underweight, saying it’s “hard to envision the US economy” cruising at 3% growth. Scotiabank also dropped emerging market equities to underweight from neutral.
Canada’s stocks benchmark, the S&P/TSX Composite Index, dropped 3.2% at midday Thursday, but still outperformed major US indexes. The S&P 500 Index dropped 4% and has underperformed the S&P/TSX Composite for three straight quarters.
“TSX valuations remain low relative to pre-pandemic levels, providing a buffer against trade war and economic volatility,” Bloomberg Intelligence analysts Gillian Wolff and Gina Martin Adams wrote on Wednesday.
The view that Canada avoided the worst of Trump’s tariff threats — after months of on-again, off-again escalations between the two countries — is being shared in the heart of Toronto’s financial district on Thursday. “If you already have low expectations, then you get bad news that’s less bad than expected, you can have a sigh of relief,” said Sam Baldwin, senior portfolio manager in Canadian equities at Guardian Capital LP.
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