Canadian stock index futures took a significant hit on Monday, with concerns of a looming recession growing stronger following U.S. President Donald Trump's unwavering commitment to imposing tariffs. The S&P/TSX index futures plummeted by 2.1% at 6:58 a.m. ET, marking their lowest level since August 2024.

Trump's reassurance that the market downturns were not deliberate and his stance of holding off negotiations with China until addressing the trade deficit exacerbated economic uncertainties. This led to a rapid adjustment in U.S. futures markets, pricing in nearly five interest rate cuts this year in anticipation of a gloomier economic outlook. Despite Federal Reserve Chair Jerome Powell's hint that there was no rush for rate cuts, the market is heavily speculating, with a 66% probability of a 25 basis-point rate cut at the upcoming Bank of Canada meeting on April 16.

Deteriorating economic conditions also impacted commodity markets, with gold prices remaining stable due to increased central bank demand and the likelihood of an early Fed rate cut. However, gains were limited as investors resorted to selling gold to offset losses in other investments. Oil prices experienced a sharp decline, dropping nearly 4% amid recession concerns and OPEC+'s planned supply rise.

The trade war turmoil caused base metal prices in China to fall, while London metals shifted to a downward trajectory after an initial increase in arbitrage trading. Canada's primary index slid more than 10% below its record high on January 30, following China's retaliatory measures against U.S. tariffs.

In corporate developments, Wesdome Gold Mines reached a deal to acquire Angus Gold. A comprehensive report on the Canadian markets can be found by clicking on the provided codes, including TSX market updates, Canadian dollar and bonds report, and a Reuters global stocks poll focusing on Canada.