Futures Gain as Canada Digital Tax Scrapped
Futures for Canada's main stock index edged higher on Monday as the revival of trade talks between Washington and Ottawa improved market sentiment.
The TSX Composite Index fell backward 59.63 points to end Friday at 26,693.32. Still, the gain on the week was 194 points, or 0.7%.
September futures crept up 0.1% Monday.
The Canadian dollar edged ahead 0.06 cents to 73.14 cents U.S.
Canada scrapped its digital services tax targeting U.S. technology firms late on Sunday, just hours before it was due to take effect, in a bid to restart stalled trade negotiations with the U.S.
The federal finance ministry said that Prime Minister Mark Carney and U.S. President Donald Trump will resume trade negotiations to agree to a deal by July 21.
Trump abruptly called off trade talks on Friday over the tax targeting U.S. technology firms, saying that it was a "blatant attack."
ON BAYSTREET
The TSX Venture Exchange slid 4.58 points to 724.21 Friday, but the index gained on the week 13 points, or 1.83%.
ON WALLSTREET
Stock futures rose early Monday as investors look to cap a stunning month for Wall Street with even more record highs, with trade hopes increasing once again.
Futures for the Dow Jones Industrials galloped 237 points, or 0.5%, to 44,362.
Futures for the much broader index took on 26.25 points, or 0.4%, to 6,250
Futures for the NASDAQ jumped 136.5 points, or 0.6%, to 22,888.
Monday’s advance follows Canada rescinding its digital service tax after President Donald Trump on Friday said the U.S. was “terminating ALL discussions on Trade with Canada.” Initial payments on the tax were set to begin Monday and would have applied to companies such as Google, Meta and Amazon.
Shares of Meta Platforms and Google-parent Alphabet gained 2% and 1%, respectively, in the premarket. Microsoft also ticked up 0.5%.
Monday also marks the last day of June, a month in which the major averages have staged a sharp recovery back to record levels. The S&P 500 is up 4.4% this month, while the tech-heavy Nasdaq has jumped nearly 6.1%. The Dow, meanwhile, has added about 3.7% month to date.
The S&P 500 and NASDAQ hit all-time highs on Friday. At its low in April, the S&P 500 was down nearly 18% for the year when global trade and tariff tensions rocked the market.
Investors will be keeping an eye on whether the Senate will be able to pass President Donald Trump’s “one, big, beautiful” bill. If passed by the Senate, the package — which narrowly passed a key procedural vote in the Senate on Saturday night — faces an uncertain path in the House, where some GOP lawmakers have balked at revisions in the latest version of the bill.
In Japan, the Nikkei 225 index advanced 0.8% Monday, while in Hong Kong, the Hang Seng fell back 0.9%
Oil prices declined 24 cents to $65.28 U.S. a barrel.
Gold prices were brighter $5.20 to $3,292.80 U.S. an ounce.
