Canadian Markets React to Global Trade Shifts as Volatility Returns

This week, Canadian equity markets experienced renewed volatility as global investors responded to rapidly evolving trade policy developments and inflationary pressures. On April 9, 2025, the S&P/TSX Composite Index opened down more than 230 points, driven by early declines in the energy, technology, and utilities sectors. However, as commodity prices rebounded—particularly oil and natural gas—and capital flowed back into Canadian tech names, the TSX recovered intraday losses and closed on firmer footing. This mirrored broader movements in U.S. markets, where the Dow surged nearly 3,000 points, and the S&P 500 and Nasdaq posted their strongest intraday gains in years following President Trump's announcement of a 90-day pause on most tariffs while raising tariffs on Chinese imports to 125%.

These developments followed escalating tensions, including China's announcement of 84% retaliatory tariffs on U.S. goods and an overnight spike in Treasury yields—fueled partly by basis trade dynamics—which contributed to market whiplash. Canadian markets, particularly those with cross-border exposure or global supply chain sensitivity, remain highly reactive to these international developments. The energy sector, a bellwether for Canadian equities, continues to be a critical stabilizing force, while information technology and industrials are experiencing heightened volatility.

At Sodali & Co, we recognize that such geopolitical and macroeconomic shifts present profound implications for Canadian public companies. Our Capital Markets Intelligence team is actively monitoring sectors most impacted by these shifts—energy, information technology, financial services, consumer discretionary, retail, and industrials—to identify shareholder risk, emerging activism, and patterns in market behavior that could affect your company.

How Sodali & Co Supports Canadian Issuers in Navigating Volatility

Our Capital Markets Intelligence services help issuers anticipate, interpret, and respond to market disruptions with clarity and precision:

• Strategic Stock Surveillance: Real-time monitoring of shareholder movements to identify significant ownership changes and detect early signs of activist activity.
• Shareholder Profile Analysis: Pre-record and record date analyses that offer deep insights into evolving ownership structures and potential voting control concerns.
• Tailored Engagement Strategies: Data-driven intelligence on investor behaviors and motivations to support effective shareholder communication and influence mapping.
• Activism Preparedness: Early detection of activist build-up through trading volume spikes, block trades, and pattern recognition—so boards can act before campaigns surface publicly.

Be Proactive. Stay Informed.

In today's fast-moving markets, preparedness and insight are critical. Sodali & Co stands ready to support Canadian boards and executive teams with tailored intelligence and strategic advice to help you stay ahead of activist threats and capitalize on market shifts.