Everything You Need to Know on Friday: Bank of Canada Poised for Further Rate Cuts, but Tariff Uncertainty Looms

Moomoo News Canada wrote a column · Jan 31 12:56

Everything You Need to Know on Friday: Bank of Canada Poised for Further Rate Cuts, but Tariff Uncertainty Looms

Good morning mooers! Here are things you need to know about today's market:

● S&P/TSX 60 Index Standard Futures are trading at 1560.10, up 0.07%

● Bank of Canada poised for further rate cuts, but tariff uncertainty looms

● Gold hits record high as tariff uncertainty sparks safe-haven rush

● Brookfield Renewable reports Q4 loss but announces 5% dividend increase

● Brookfield Business Partners swings to Q4 loss

● Lundin Mining fined $3.3 million and Alcaparrosa mine closed by Chilean regulator

Currency Snapshot

Today, the Canadian dollar is trading at 0.6907 cents US, a slight increase from Thursday's rate of 0.69 cents US.

Top Stories

Macro

RBC Economist: Bank of Canada Poised for Further Rate Cuts, but Tariff Uncertainty Looms

The Bank of Canada is expected to continue lowering interest rates, though potential tariffs could affect the pace and scale of future cuts, according to RBC's chief economist Frances Donald.

The central bank recently reduced its key rate to 3%, marking its sixth consecutive cut since June 2024. While gradual easing toward 2% by year-end remains the base case, trade uncertainties, including possible U.S. tariffs, may slow the process.

Donald noted that tariff threats create economic uncertainty, impacting business investment and decision-making. Bank of Canada Governor Tiff Macklem also warned that an extended trade conflict could fuel inflationary pressures.

Sectors

Trump Confirms New Tariffs on Canadian Imports, Oil Inclusion Uncertain

Trump confirmed new tariffs on Canadian imports starting Saturday but remained undecided on whether oil would be included. Initially stating that oil was not part of the plan, he later clarified that a final decision was still pending. He indicated that the determination on oil would likely be made later that night. The uncertainty has raised concerns in Canada, with officials closely monitoring the situation.

Stocks to watch

Brookfield Business Partners Swings to Q4 Loss

$Brookfield Business Partners LP (BBU.UN.CA)$ posted a Q4 net loss of $438 million ($2.02 per LP unit), reversing a $1.42 billion profit from the previous year. The annual loss totaled $109 million, impacted by non-cash expenses in healthcare services and provisions in construction. In contrast, the prior year benefited from gains on the sale of its nuclear technology unit. Additionally, Brookfield will distribute $0.0625 per unit on March 31.

Lundin Mining Fined $3.3 million and Alcaparrosa Mine Closed by Chilean Regulator

$Lundin Mining Corp (LUN.CA)$ was fined $3.3 million by Chile's environmental regulator and the Alcaparrosa mine was closed due to four violations related to a sinkhole incident in 2022. Mining operations at Alcaparrosa have been suspended since 2022, and its mineral reserves have been removed from future production estimates. The closure does not affect the rest of the Candelaria operation, which is expected to produce 140,000-150,000 tonnes of copper in 2025. Lundin plans to review the notice and determine next steps regarding the alleged environmental permit breach.

Brookfield Renewable Reports Q4 Loss but Announces 5% Dividend Increase

$Brookfield Renewable Partners LP (BEP.UN.CA)$ reported a Q4 net loss of $9 million, or $0.06 per LP unit, compared to a profit of $35 million, or $0.01 per LP unit last year. Despite the loss, funds from operations (FFO) rose to $304 million, driven by acquisitions and business growth. The company also announced a 5% increase in its quarterly distribution to $0.373 per unit, payable on March 31. Brookfield remains confident in its strong growth outlook, particularly in the U.S., and made several key executive appointments.

Source: BNN Bloomberg, MT Newswires

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