Bay Street Likely To Open On Negative Note On Tariff Concerns

(RTTNews) - Canadian shares look headed for a weak start Friday morning as tariff concerns resurfaced after U.S. President Donald Trump threatened 50% tariffs on EU goods from June 1. Weak oil prices could hurt energy stocks and add to market's downside.

Vermilion Energy (VET.TO) has entered into a definitive agreement for the sale of its Saskatchewan and Manitoba assets for cash proceeds of C$415 million. Net proceeds from the transaction will be directed towards debt repayment. The company expects to exit 2025 with net debt of C$1.5 billion, with a trailing net debt to FFO ratio of 1.4 times.

The Canadian market ended marginally up on Thursday, gaining some ground in afternoon trades as U.S. treasury yields gave back ground after recently surging due in part to concerns about the fiscal impact of a Republican tax cut bill.

The benchmark S&P/TSX Composite Index pulled back well off its highs of the session, ending the day up just 14.84 points or 0.1% at 25,854.01.

The tax cut bill passed the GOP-controlled House in a largely party-line vote early on Thursday, but analysts warn it could add trillions to the federal government's already massive debt. The plan has sparked fears of an even wider deficit, especially as interest payments continue to soar.

Asian stocks ended mixed on Friday despite a retreat in U.S. Treasury yields and comments from a Federal Reserve official that the U.S. central bank might lower interest rates in 2025 if tariff issues are resolved.

European stocks are down sharply, hurt by U.S. President Donald Trump's threat that the European Union will impose 50% tariffs on EU goods from 1 June, brewing transatlantic trade tensions into a full-scale trade war.

"The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with," Trump wrote on his social media platform, Truth Social.

In commodities trading, West Texas Intermediate Crude oil futures are down $1.08 or 1.76% at $60.12 a barrel.

Gold futures are gaining $57.20 or 1.75% at $3,352.20 an ounce, while Silver futures are down $0.144 or 0.43% at $33.075 an ounce.