Futures Inch up to Begin June

The TSX Composite Index lost 35.51 points to end Friday at 26,175.05. However, for the week, the index was up 296 points, or 1.14%.

Futures improved 0.2% Monday.

The Canadian dollar took on 0.16 cents to 73.01 cents U.S.

U.S. President Donald Trump said on Friday he planned to increase tariffs on imported steel and aluminum to 50% from 25% starting Wednesday.

The levies add to the existing tariffs on steel and aluminum that Trump imposed when he came to power in January, deepening the global trade war.

The spotlight this week will be on the Bank of Canada's interest rate decision due on Wednesday and the Canadian employment report, expected Friday.

On the economic front, the Markit Canada Manufacturing PMI for May is due out this morning (about 9:30 a.m. ET).

ON BAYSTREET

The TSX Venture Exchange fell 2.48 points to 694.40 Friday, but was in the green on the week 7.7 points, or 1.13%.

ON WALLSTREET

Stock futures fell Monday, the first trading day of June, as global trade tensions increased.

Futures for the Dow Jones Industrials slid 103 points, or 0.2%, Monday to 42,191.

Futures for the S&P 500 index let go of 20.25 points, or 0.3%, to 5,895.75.

Futures for the NASDAQ faltered 103 points, or 0.5%, to 21,277.75.

China pushed back against U.S. accusations that it had violated a temporary trade agreement. Instead, the country blamed Washington for failing to uphold the deal — a sign that negotiations between the world’s two largest economies are deteriorating.

Tensions reignited following a brief pause after U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng met in Geneva and agreed to a 90-day suspension of most tariffs.

National Economic Council director Kevin Hassett suggested on Sunday that President Donald Trump and China’s President Xi Jinping could have a conversation about trade as soon as this week.

Tensions between the U.S. and European Union also heightened after Trump said he would double steel tariffs to 50%. The EU warned that this “undermines” negotiations, with a spokesperson adding: “This decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic.”

On Friday, the S&P 500 closed out the month of May with a more than 6% gain, its best monthly performance since November 2023. The tech-heavy NASDAQ Composite surged more than 9% for the month and the Dow Jones Industrial Average rose about 4%.

In this news Monday, photocopy giant Xerox has cut its quarterly dividend for the second time in six months as it seeks to conserve cash.

In Japan, the Nikkei 225 index plummeted 1.3% Monday, while in Hong Kong, the Hang Seng sank 0.6%.

Oil prices hiked $2.48 to $63.27 U.S. a barrel.

Gold prices popped $62.60 to $3,351.50 U.S. an ounce.