U.S.-China trade talks in London keep North American markets mixed

The TMX broadcast centre is shown in Toronto on May 9, 2014. Photo by Darren Calabrese /THE CANADIAN PRESS

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TORONTO — U.S.-China trade talks in London give investors the latest shot of optimism even as North American markets registered few gains Monday.

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In New York, the Dow Jones industrial average was down 1.11 points at 42,761.76. The S&P 500 index was up 5.52 points at 6,005.88 while the Nasdaq composite was up 61.28 points at 19,591.24.

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“Talks have been ongoing over the last week or so and I think the market is showing or at least behaving as if we’re going to see something positive,” said Allan Small, a senior investment adviser at iA Private Wealth Inc.

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Those negotiations have come after months of acrimony between the world’s two biggest economies, which exchanged barbs over advanced semiconductors that power artificial intelligence, minerals vital to carmakers and other industries, and visas for Chinese students at American universities.

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Their feud manifested in intensifying tariffs imposed on each other but were halted last month for 90 days.

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Investors have been holding out hope that this week’s talks could lead to some form of a truce and perhaps even dash the recession worries that have been swirling since the start of the year.

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“Trade, tariffs, inflation, interest rates on both sides of the border, that’s what’s driving the bus right now,” said Small.

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“Any positive data on any of those things, especially out of the U.S., will take these markets higher, both in the Toronto market and the U.S. market.”

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The S&P/TSX composite index was down 53.33 points at 26,375.80.

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When Small looked at the Canadian market on Monday, he saw it as being “basically flat, even though Prime Minister Mark Carney announced that day that the country will speed up its military spending timeline to hit the NATO target of two per cent of national GDP this year.

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“Did that really move the markets? No,” said Small. “Defense companies are up, but I don’t think it has to do with Canada’s announcement.”

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Instead, he attributed the flat market to oil ticking upward, gold being little changed and banks dropping.

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“Usually if you get two out of three doing well, you’ll get a higher market,” Small said. “You get all three higher, you’ll have a great market, so it looks like Canadian bank stocks are the laggard today, keeping the TSX from moving higher.”

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The Canadian dollar traded for 73.08 cents US compared with 73.05 cents US on Friday.

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The July crude oil contract was up 71 cents US at US$65.29 per barrel and the July natural gas contract was down 15 cents US at US$3.64 per mmBTU.

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The August gold contract was up US$8.30 at US$3,354.90 an ounce and the July copper contract was up eight cents US at US$4.93 a pound.

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This report by The Canadian Press was first published June 9, 2025.

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Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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