Canada's main stock index ended higher as stronger-than-expected bank earnings offset a drop in oil prices and worries about the growth prospects for high-flying technology shares.
The S&P/TSX composite index was up 0.21% to close at 25,203.98.
Heavily-weighted financials gained 0.81% to 484.70.
The energy sector dropped 1.64% to 263.42 and materials were down 0.17% at 423.68. The information technology shares fell 1.18% to 294.26.
The U.S. dollar rose 0.36% against its Canadian counterpart at C$1.4310.
Canada's Bank of Nova Scotia and Bank of Montreal said they would wait for clarity on U.S. government tariffs to build more rainy-day reserves and take actions to manage risks. The banks, Canada's third and fourth largest, put aside over C$1 billion in loan loss reserves in the first quarter ended January 31 to shield against bad loans amid tariff uncertainty that could slow loan demand. U.S. President Trump said his plan to impose a 25% tariff on imports from Canada and Mexico was "on time" and expected to take effect on March 4.
"I think the anxiety levels are a little bit higher in Canada, than they are in the US," BMO's CEO Darryl White told analysts, noting the bank's North American footprint, with more than a third of its income coming from the U.S., would be an advantage.
"It's frustrating for our clients to try to predict where this all lands," he said, adding that clients on both sides of the border were being more cautious.
Scotiabank's Chief Risk Officer Phil Thomas said the lender would build provisions in the second quarter if tariffs are put in place and had incorporated more severe tariffs into its
"already stressed, pessimistic and very pessimistic scenarios."
"If tariffs are imposed by the U.S. government, then we have clarity in terms of our actions. Until then, we have no clarity," he said.
Canadian factory sales most likely rose 2.0% in January from December, largely driven by higher sales in motor vehicle industry group, as well as the primary metal subsectors, Statistics Canada said in a flash estimate. The estimate was calculated based on a weighted response rate of 62.4%. The average weighted response rate for the survey over the previous 12 months has been 93.6%.
Dye & Durham has received an unsolicited bid to take it private in a deal valued at C$1.34 billion, or C$20 per share, the Canadian company said, without disclosing the details of the bidder. The company's second-largest shareholder, Plantro, has submitted a bid to take it private, Bloomberg News reported on Monday.
