The Sunday market open was highly anticipated after all of the tariff (and counter tariff) measures that were put in place by the US and Canadian governments over the weekend. Not surprisingly, the Canadian dollar got smashed on the open, trading down below $0.68 relative to the USD. This marks the worst levels for the Loonie since 2003.
So far there appears to be a silver lining for the energy sector however, as the initial reaction for crude oil futures is higher (up ~$1.50/bbl), while natural gas futures are up more than 8%. Of course, we have yet to see indications for Canadian differentials on oil and natural gas, so that will be a big factor as to what Canadian markets might look like tomorrow. But for now, things appear to be hanging in there much better than expected.
Source: TradingView
Source: TradingView
Given that the volatility and news flow in regards to the tariff situation is likely to remain very fluid, it’s fair to expect that markets will change quickly this week.