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Trade War Threatens Canadian Banks Stocks' Rally After 27% Surge


Published on 2025-01-22 11:41:23 - bnnbloomberg
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  • The rally in Canadian bank equities is at risk from a potential trade war that would quickly cause a surge in unemployment and loan defaults, analysts at National Bank of Canada said.

The article from BNN Bloomberg discusses the potential impact of a trade war on Canadian bank stocks, which have recently experienced a significant rally. Despite a 27% surge in stock prices, the looming threat of a trade war between the U.S. and China could disrupt this upward trend. Analysts are concerned that escalating trade tensions might lead to economic slowdowns, affecting the financial sector's performance. The article highlights how Canadian banks, heavily reliant on both domestic and international economic stability, could face challenges from reduced trade, lower commodity prices, and potential retaliatory tariffs. It also notes that while the banks have shown resilience and growth, the uncertainty around trade policies could introduce volatility and dampen investor confidence in the sector.

Read the Full bnnbloomberg Article at:
[ https://www.bnnbloomberg.ca/investing/2025/01/22/trade-war-threatens-canadian-banks-stocks-rally-after-27-surge/ ]