Here are four things you need to know this morning
Tech tariff reprieve: North American stock markets were set for a positive opening after U.S. President Donald Trump exempted a range of popular electronics from the 145 per cent tariffs on China and a 10 per cent flat rate around the globe. The White House says the reprieve is temporary and a part of the longstanding plan to apply a different, specific levy to the sector. An official announcement on that plan could come as soon as today. Shares of Apple were trading up by about six per cent on the tariff reprieve. Frequent BNN Bloomberg guest Barry Schwartz gave this shout-out to Tim Cook, the company’s CEO, on social media: “Never bet against Tim Apple.”
Loonie taking flight: The Canadian dollar has climbed to a fresh five-month high, trading above 72 U.S. cents. The loonie has been benefitting as investors question the safe-haven status of U.S. investments in the wake of erratic policy moves from the White House. The loonie has also been given a boost by Canada avoiding the worst of U.S. tariffs. Our currency’s next test will come on Wednesday when the Bank of Canada announces its latest decision on interest rates and gives its outlook for the economy.
Oil and gold outlook: We have some interesting calls on the outlook for oil and gold today. Analysts at Goldman Sachs say the global oil market faces large surpluses this year and next as the trade war weighs on crude demand growth and OPEC+ eases supply curbs. Crude has been trading around a four-year low as trade tensions stoke fears of a global recession. Meanwhile on the gold front, Goldman analysts now see gold rallying to US$3,700 an ounce by the end of this year – with prices set to hit $4,000 an ounce by mid-2026 – driven by strong central bank demand and the metal’s role as a hedge against recession and geopolitical risks.
Goldman beats expectations: And speaking of Goldman Sachs, the Wall Street titan has posted first-quarter results that topped analysts’ expectations on stronger-than-expected equities trading revenue. Profit rose 15 per cent from the year-earlier period. Goldman CEO David Solomon hinted at the turmoil caused by Trump’s escalation of trade tensions this month in his remarks. “While we are entering the second quarter with a markedly different operating environment than earlier this year, we remain confident in our ability to continue to support our clients,” Solomon said in the bank’s earnings release.