TSX Finishes in Red

Toronto's benchmark index recovered somewhat from sharp initial losses on Friday as U.S. President Donald Trump ramped up his tariff assault on Canada, while investors assessed better-than-expected domestic employment data for June.

The TSX Composite Index was lower by 59.05 points to adjourn Friday at 27,023.25. On the week, the index gave back 13 points, or 0.05%.

The Canadian dollar erased 0.16 cents at 73.07 cents U.S.

Gold miners Aya Gold & Silver triumphed $1.14, or 9.2%, to $13.46 and Equinox Gold Corp advanced 17 cents, or 2%, to $8.53.

Copper prices slipped, and with it, dragged miners Hudbay Minerals docked 42 cents, or 2.9%, to $14.31, and Capstone Copper was down five cents to $7.95.

On Thursday, Hudbay said it had temporarily suspended its Snow Lake operations due to a wildfire in Northern Manitoba.

Meanwhile, Aritzia added $1.08, or 1.5%, to $75.13, after the fashion retailer's first-quarter results beat expectations.

MTY Food Group shares dropped $5.88, or 12.9% to $39.82, after the company's second-quarter adjusted earnings per share missed analyst estimates.

Trump late on Thursday issued a letter implementing a 35% tariff rate on all imports from Canada, set to go into effect from August 1, adding that the rate would go up if Canada retaliated.

He also said the European Union could receive a letter on tariff rates by Friday and floated a blanket 15% or 20% tariff rate on other countries, a step up from the current 10% baseline rate.

The 35% tariff is an increase from the current 25% rate that Trump had assigned to Canada and is a blow to Prime Minister Mark Carney, who was seeking to come to a trade agreement with Washington.

Carney said his government will defend Canadian workers and businesses in their negotiations with the U.S.

An exclusion for goods covered by the U.S.–Mexico–Canada Agreement was expected to stay in place, while 10% tariffs on energy and fertilizer were not set to change, though Trump had not made a final decision.

On the macroeconomic scene, Statistics Canada says the economy created 83,000 jobs in June, lowering the unemployment rate 0.1 percentage points to 6.9%.

Moreover, the agency says building permits rose in May by $1.4 billion (+12.0%) to reach $13.1 billion.

ON BAYSTREET

The TSX Venture Exchange gained 10.98 points, or 1.4%, to 784.42. The weekly gain was 29 points, or 3.9%.

The 12 TSX subgroups were evenly divided, with information technology slipping 1.7%, health-care down 1.1%, and consumer staples off 0.9%.

The half-dozen laggards were co-led by energy and gold, each up 1.3%, while materials registered higher 0.9%.

ON WALLSTREET

Stocks dropped Friday, a day after the S&P 500 posted a new record high, after President Donald Trump announced a 35% tariff on Canada and threatened higher tariffs across the board.

The Dow Jones Industrials sank 279.13 points to conclude Friday at 44,371.51.

The S&P 500 lost 20.71 points to 6,259.75.

The NASDAQ Composite dipped 45.14 points to 20,585.53.

Friday’s losses pushed the major averages into the red for the week. Next week, investors will need to navigate the start of second-quarter earnings reporting season, along with the release of some key inflation data.

Trump cited fentanyl as a reason for higher Canada duties, adding that they would go higher if the country retaliates. “If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter,” Trump said in a letter posted on Truth Social.

Trump then told NBC News he was planning blanket tariffs of 15% to 20% on remaining countries, higher than the current 10% standard that investors had grown comfortable with.

Traders were also waiting on a trade update from Trump on the European Union this week, but it’s not clear whether the president will post a letter with a new rate like he did with Canada or simply give an update on progress of ongoing deal talks.

Next week, investors will need to navigate the start of second-quarter earnings reporting season, along with the release of some key inflation data.

Prices for the 10-year treasury fell, raising yields to 4.42% from Thursday’s 4.35%. Treasury prices and yields move in opposite directions.

Oil prices improved $2.02 to $68.59 U.S. a barrel.

Gold prices jumped $46.00 at $3,371.70 U.S. an ounce.