12:16 PM EDT, 03/10/2025 (MT Newswires) -- The Toronto Stock Exchange is down 300 points at midday as the tariffs war continues to spook investors.

Info tech and miners are the biggest decliners, shedding 3.5% and 3.4%, respectively.

Telecoms (+1%), utilities (+0.5%) and healthcare (+0.2%), are the sole gainers.

Oil rose for a third day on Monday even as China's economy weakened in February and U.S. President Donald Trump's tariff threats continue to roil markets. Gold was steady as the dollar and treasury yields weakened.

BMO noted the policy volatility of last week, with markets following suit. But the TSX outperformed with a 2.5% decline vs. a 3.1% drop in the S&P 500.

It's safe to say tariffs will continue to dominate in this country. BMO expects the BoC to cut by 25 bps at the meeting on Wednesday, and the following three. Given the very significant risks over the near term, BMO will be watching Governor Macklem's press conference very closely, but it suspects he will have very little in the form of specific guidance. "As we can attest, it is extremely difficult to speak about the future with any amount of certainty," BMO added, noting the BoC's decision is on the same day the 25% steel and aluminum tariffs could kick in.

BMO lowered its forecast for Canadian GDP last week, as "after some decent momentum at the turn of the year, the economy could face a modest recession in the quarters ahead." BMO's initial read is for growth to average 0.5% this year and next -- assuming the broad tariffs (10% on energy, 25% on everything else) are lifted after a year. The bank is also pencilling in another 50 bps in easing from the BoC, starting this week. That would put the terminal rate at 2.00% by July, vs. 2.50% previously. "The key message is that regardless of what actually happens on the tariff front, it's clear that the heavy weight of uncertainty is here to stay for a while." China also announced retaliation on Canada (following its EV and steel and aluminum tariffs imposed last year). Starting March 20, China will tariff Canadian rapeseed oil, rapeseed meal, and pea products (at 100%) and pork and some seafood (25%).

In his 'Early Morning With Dave' note, veteran market watcher David Rosenberg noted "the chaos in Washington continues, especially on the trade and tariff front, as the waffling shows no signs of ending." Rosenberg said the president has already 'flip-flopped' on levies he placed on Mexico and Canada last week, but is keeping the threat alive by issuing only a short-term reprieve and stating that steel, aluminum, dairy, and lumber are going to get hit no matter what. But, he added, what is most damaging to the economies of Canada and the United States, is the elevated and sustained level of economic uncertainty, which if sustained, will cause on all its own a -1% drag on U.S. GDP growth (at least) and closer to -2% in Canada. "We have modeled this out and are confident in the results and why our risk-off case has been emboldened of late," according to Rosenberg. Beyond the stock market, the other "price" that dovetails with that theme is the DXY dollar index which just posted its worst week since November 2022 (-3.5%) and suffering its worst start to the year since 2008, he noted.

In terms of stock specific news, Whitecap Resources ( SPGYF ) and Veren ( VRN ) agreed to merge in a $15 billion all-share deal to create a major light oil and condensate producer in Saskatchewan and the largest landholder in the Alberta Montney and Duvernay production area.

The combined company will have 370,000 barrels of oil equivalent per day of corporate production with significant overlap across both unconventional and conventional assets. The deal is scheduled to close by the end of May.

In other news, the parent company of 7-Eleven appears to be warming to a possible sale to Quebec-based convenience store owner Alimentation Couche-Tard ( ANCTF ) , The Canadian Press is reporting.