The Toronto Stock Exchange’s S&P/TSX Composite Index was down 0.73 per cent at market close. Also on Tuesday, Europe’s continent-wide Stoxx 600 dropped 0.47 per cent; the S&P 500 is up 1.36 per cent. 

(The Logic)

Talking point: Both China and the U.S. moved to minimize the impact on markets after Monday’s volatility, which d saw the Stoxx 600 index fall and the S&P 500, Nasdaq and the Dow all have their worst day in 2019. On Monday, Washington labelled Beijing a currency manipulator, but on Tuesday U.S. President Donald Trump downplayed concerns about the effects of a Chinese trade war, claiming that there is strong foreign investment in the U.S. from China. Trump’s top economic advisor said the U.S. is looking to continue talks with China. China’s central bank said it won’t depreciate the yuan to stay competitive and that it would sell 30 billion yuan ($5.67 billion CAD) in short term securities, after which the Chinese currency rose 0.2 per cent. Tuesday’s moves set both countries up for a prolonged conflict. Trump also tweeted that he would extend support to American farmers “next year if necessary.” China has significantly scaled back agricultural purchases as part of the trade war. So far Trump has promised US$28 billion in subsidies to American farmers as part of the conflict.