Loonie, auto parts stocks up after revamped trade deal with United States
TORONTO -- The Canadian dollar and shares of the country's major auto parts companies were up in the wake of the tentative trade deal between Canada, the U.S. and Mexico.
The loonie was trading at 78.04 cents US shortly after North American stock markets opened, up from an average of 77.25 cents US on Friday.
Shares of Canada's largest auto parts company, Magna International Inc., were up nearly six per cent at $71.59, while Linamar Corp. was up seven per cent at $63.64 and Martinrea International Inc. gained 14 per cent at $15.07.
U.S. President Donald Trump had threatened to impose punishing auto tariffs on Canada if it didn't reach an deal to replace the North American Free Trade Agreement.
As a side deal to the new pact, called U.S.-Mexico-Canada Trade Agreement, or USMCA, the Trump administration has agreed to exempt Canada if the United States imposes 25 per cent tariffs on imported vehicles and auto parts.
The S&P/TSX composite index was up 79.93 points at 16,153.07 as of 10 a.m. ET. Meanwhile, the Dow Jones industrial average was up 243.19 points at 26,701.50 and the S&P 500 composite index was up 19.71 points at 2,933.69. The Nasdaq composite was up 48.99 points at 8,095.34.