TSX Shies Away from Record High on Trade News
Canada's commodity-heavy main stock index scaled back from its record high on Monday, pressured by mining shares, while investors assessed a trade deal between the U.S. and the European Union.
The TSX Composite Index dipped 93.57 points to start the day and the week at 27,400.78.
The Canadian dollar dipped 0.06 cents at 72.91 cents U.S.
The U.S. struck a framework trade agreement with the EU on Sunday, imposing a 15% tariff on most EU goods and requiring the bloc to invest around $600 billion in the U.S.
ON BAYSTREET
The TSX Venture Exchange shed 11.89 points, or 1.5%, to kick off Monday at 789.24.
All but two of the 12 TSX subgroups were lower Monday, with gold tumbling 2.7%, materials weaker by 2.3%, and telecoms lower 0.9%.
The two gainers proved to be energy, up 1.4%, and information technology, up 0.5%.
ON WALLSTREET
The S&P 500 rose slightly on Monday as investors showed limited enthusiasm over a highly anticipated trade deal announced between the U.S. and the European Union.
The Dow Jones Industrial Average ballooned 208.01 points to 44,901.92.
The much broader index triumphed 25.3 points to 6,388.64.
The NASDAQ gained 50.36 points to 21,108.32.
The moves came after President Donald Trump announced Sunday that the U.S. has reached an agreement with the European Union to lower tariffs to 15%. The president had previously threatened 30% tariffs on most imported goods from the U.S.’s largest trading partner.
On Monday, Trump said that the global baseline tariff for countries that have not renegotiated with the U.S. will likely be between 15% to 20%.
More than 150 companies in the S&P 500 are due to post their quarterly results, including “Magnificent Seven” names Meta Platforms and Microsoft on Wednesday, followed by Amazon and Apple on Thursday. Investors will be listening for companies’ comments on AI spending for direction on whether big investments in hyperscalers this year are justified.
The Fed will also hold its two-day policy meeting, concluding on Wednesday. Although the central bank is expected to keep its key short-term interest rate at its current target range of 4.25%-4.5%, investors will be looking for clues about whether a rate cut could be on the table at the September meeting.
Prices for the 10-year treasury were fairly flat, raising yields to 4.41% Friday’s 4.38%. Treasury prices and yields move in opposite directions.
Oil prices sank $1.44 to $66.60 U.S. a barrel.
