04:18 PM EST, 12/10/2024 (MT Newswires) -- The Toronto Stock Exchange was down for a second-straight day on Tuesday ahead of what is widely expected to be the Bank of Canada 'jumbo' rate cut tomorrow, as the threat of a potential U.S. tariff war intensified.

The S&P/TSX Composite Index closed down 121.09 points to 25,504.33. Among sectors today, Health Care and Base Metals are the biggest decliners, each down 1.5%. Battery Metals was the biggest gainer, up 3.42%.

Two high profile miners were in the news Tuesday afternoon. Bloomberg was reporting that Barrick Gold ( GOLD ) is seeking buyers for its Tongon gold mine in the Ivory Coast in an effort to sell the aging operation when bullion prices are surging. Bloomberg was also reporting the world's biggest gold miner, Newmont ( NEM ) , is further reducing its corporate workforce as part of an effort to trim costs.

The Bank of Canada will release its latest interest-rate decision on Wednesday morning, with another outside cut to rates expected. Last weekend The Canadian Press noted that interest rate swap markets, which capture expectations about monetary policy, put the odds of a 50-basis-point cut on Wednesday at around 85%, according to LSEG data. It noted 21 out of 27 analysts polled by Reuters, including economists at Canada's six big banks, also expect a half percentage-point move. Such a cut would widen the gap between the BoC and the Fed in terms of divergence between them on interest rates and send the Canadian dollar lower.

Meanwhile, President-elect Donald Trump called Justin Trudeau the governor of the "Great State of Canada" on his social media account in a taunt after the Canadian Prime Minister yesterday guided on his government's approach to dealing with a potential trade war with the U.S., saying it would "respond to unfair tariffs in a number of ways, and we're still looking at the right ways to respond."

RBC Economics published a report looking at the industries and provinces most exposed to potential tariffs threatened by Donald Trump. The bank noted the threat of U.S. tariffs on Canadian imports has put Canada's strong dependence on trade into sharp focus. RBC said: "Disruptions or restrictions to the flow of goods and services across the U.S. border could seriously harm Canadian businesses and communities, and ultimately, the broader economy. While there's considerable uncertainty about whether tariffs will be imposed, and if so, at what rate and on which products -- some industries and regions are more exposed to losing access to the U.S. market."

According to RBC, Canadian oil and gas producers, and manufacturers of primary metals, plastics, motor vehicles, and aerospace products are among the top industries most exposed to potential U.S. tariffs. If sweeping tariffs are implemented, it could create significant challenges to communities in Ontario, Quebec, Alberta, and New Brunswick, the bank said.

West Texas Intermediate (WTI) edged higher but firmly rangebound despite new stimulus measures from China and turmoil in Syria following the collapse of the Assad regime. WTI crude oil for January delivery closed up US$0.22 to settle at US$68.59 per barrel, while February Brent crude closed up US$0.05 to US$72.19.

Gold traded higher for a third-straight session late afternoon on Tuesday, pushing back above US$2,700, amid interest-rate cuts and safe-haven buying in response to fresh turmoil in the Middle East. Gold for February delivery was last seen up US$32.50 to US$2,718.30 per ounce, the highest since Nov.22.