Author: Reuters

Canada’s main stock index was subdued on Tuesday, pressured by technology stocks, as investors awaited potential trade deals between the U.S. and its partners.

The Toronto Stock Exchange’s S&P/TSX composite index was down 0.03% at 27,307.73 points.

Trade negotiations appeared shaky after EU diplomats said the 27-nation bloc was considering broader counter-measures against Washington.

Prospects for an interim trade deal between India and the U.S. have also dimmed, according to Indian government sources.

Meanwhile, U.S. Treasury Secretary Scott Bessent announced plans to meet his Chinese counterpart next week, potentially discussing an extension to the August 12 deadline set for tariffs on China.

The Bank of Canada said in a survey Canadian businesses see less chance of a worst-case tariff scenario but remain cautious, while keeping hiring and investment in check.

“The TSX should do relatively well throughout this earnings period,” said Ian Chong, portfolio manager at First Avenue Investment Counsel.

He added that while there will be a tariff impact, it will be “relatively muted” since the full-blown 35% tariff on Canada has not been set yet.

On the TSX, materials stocks gained 1.1% after gold prices retreated from a five-week high.

Conversely, the information and technology subindex slipped 1.8%, tracking declines in its Wall Street peers.

In the U.S., Alphabet and Tesla will kick off the results season for the “Magnificent Seven” stocks on Wednesday.

Canada’s main stock index was subdued on Friday, with gains in utilities offsetting declines in industrials, as investors assessed domestic trade updates and data showing economic resilience.

Toronto Stock Exchange’s S&P/TSX composite index was flat at 27,395.08 points, a day after hitting record highs, but was set to log weekly gains.

Data from last Friday showed Canada’s economy added many more jobs than expected in June, and the unemployment rate surprisingly dipped to 6.9%. Thursday’s U.S. retail data showed sales rebounded more than expected in June.

Canada and New Zealand reached a “mutually satisfactory” resolution to a long-term dispute over dairy product access, Ottawa said on Thursday.

Declines on the day were led by industrial shares falling 0.7%, with Air Canada dropping 3.7%, the most on the index.

Canadian Pacific Kansas City and Canadian National Railway dropped over 2% each.

On the flip side, utility stocks rose, boosted by Capital Power and Transalta Corp shares adding 2% and 3.6%, respectively.

Energy stocks climbed 1%, with Headwater Exploration and Baytex Energy rising over 3.5% each.

Among individual stocks, Transalta Corp rose 3.6% after brokerage Scotiabank upgraded its rating.

Looking ahead, investors will assess Bank of Canada’s Business Outlook Survey, set for release on Monday, for business expectations amid tariff-related uncertainty.

RBC analysts expect early stabilization, with Canada’s duty-free exemption for trade compliant under the USMCA treaty.

“Better than feared growth and higher than wanted inflation topped with the prospect of significant fiscal stimulus spending in the year ahead — leaves a high bar for the BoC to make additional interest rate cuts this year,” RBC analysts said in a note.

Canada’s main stock index declined on Friday, dragged down by losses in technology shares, as Israel’s widescale strikes on Iran dampened global risk appetite.

The S&P/TSX composite index was down 0.5% at 26,490.64 points.

Israel has warned that the strikes were the start of a prolonged operation to prevent Tehran from building an atomic weapon. Iran has promised a harsh response.

However, U.S. President Donald Trump urged Iran to make a deal over its nuclear programme, saying there was still time for the country to prevent further conflict with Israel.

The downturn in the TSX was limited as investors shifted to safe-haven assets, boosting metal mining shares. The materials sector gained 0.6%

The energy sector rose 1.7% to be the top gainer as the tensions in the Middle East sparked worries about supply disruptions, boosting crude prices.

“I don’t think it’s any surprise that Toronto Stock Exchange is going to hold up greater than New York, which is more based on technology or multinational corporations,” said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.

“Gold and oil make up a big chunk of our market and anything commodities-based is relatively going to do well”.

The technology sector fell 1.5%, while the heavyweight financial stocks were down nearly 1%.

The benchmark index achieved a second consecutive record high on Thursday and appears poised to secure its third straight weekly gain, provided losses remain contained.

Canada’s main stock index was headed for a record high on Friday, as a better-than-expected U.S. jobs report and signs of easing trade tensions between Washington and China fueled investor optimism.

The Toronto Stock Exchange’s S&P/TSX composite index was up 0.6% at 26,486.37 points. The index was set to eclipse Tuesday’s record closing high of 26,426.64 if gains hold.

U.S. nonfarm payrolls rose by 139,000 jobs last month, data released on Friday showed, while economists polled by Reuters had expected a job growth of 130,000.

Meanwhile, White House trade adviser Peter Navarro said on Friday that a planned meeting between U.S. and Chinese officials on trade is expected within seven days, giving hope that the trade war between the world’s two largest economies might de-escalate.

Separately, China on Friday called to improve bilateral ties with Canada.

Earlier this week, U.S. President Donald Trump had doubled tariffs on imports on steel and aluminum.

TSX edges higher amid US-China trade talks and upcoming jobs data

“It’s just a ploy to get everyone to the table and to try to make a deal,” said Michael Constantino, CEO of online investment platform Webull Canada.

Canada’s Industry Minister Melanie Joly said on Thursday that Prime Minister Mark Carney and Trump are in direct communication as part of Ottawa’s bid to persuade Washington to lift tariffs.

“I think the prime minister of Canada and President Trump will at some point come together and do what’s best for both countries,” Constantino said.

Canada’s unemployment rate in May jumped to its highest level in almost nine years, excluding the peak of the COVID-19 pandemic.

On TSX, information and technology stocks gained 1.4% on Friday, tracking gains in tech-heavy Nasdaq index.

Energy subindex gained 1.3% as oil prices rose slightly and were on track for their first weekly gain in three weeks.

Canada’s main stock index rose on Thursday amid choppy trading, as investors assessed news of U.S.-China tariff negotiations and awaited key jobs data from both home and the United States.

The Toronto Stock Exchange’s S&P/TSX composite index was up 0.1% at 26,358.00 points.

Chinese President Xi Jinping held talks with U.S. President Donald Trump by phone, the official Xinhua news agency reported on Thursday. It mentioned the phone talks were at Trump’s request but didn’t provide further details.

“The largest trading partner for the U.S. is China and the fact that Trump and President Xi are holding a call to discuss trade is a positive development, especially given the setbacks that we’ve seen recently”, said Ian Chong, portfolio manager at First Avenue Investment Counsel.

“While the focus looks positive, we still don’t know what’s going to happen because there could be a moment where people are more concerned about non-farm payroll and they might start taking some risk off the table.”

Employment figures from Canada and non-farm payrolls data from the U.S. are scheduled for Friday, which can help assess the impact of Trump’s trade policies on the labour market.

TSX flat as tariff uncertainty lingers; BoC holds key rate steady

Meanwhile data showed on Thursday, Canada’s trade deficit in April widened to an all-time high of a whopping C$7.1 billion ($5.2 billion), as tariffs imposed by Trump sucked out demand for Canadian goods from the United States.

The U.S. tariff hikes on steel and aluminum took effect on Wednesday, prompting concerns from Canadian companies and a major union of more job losses and lost sales.

On TSX, metal miners’ subindex gained nearly 2% as gold prices rose. Energy sector was up 0.5% after oil extended gains.

Conversely, information and technology stocks fell 1%, led by a 9% drop in Descartes after the parametric insurance specialist missed first-quarter result estimates.

Canada’s main stock index struggled for direction on Wednesday, as investors remained cautious on U.S. tariff negotiations with trading partners and assessed the Bank of Canada’s decision to maintain the interest rate.

The Toronto Stock Exchange’s S&P/TSX composite index was flat at 26,426.98 points. The index notched a record peak in the previous two sessions.

The U.S. doubled tariffs on imported steel and aluminum on Wednesday, the same day as the deadline for Washington’s trading partners to make their best offers to avoid hefty “Liberation Day” tariffs from taking effect in July.

Europe’s top trade negotiator said that trade talks between the European Union and the U.S. are going in the right direction.

Also on Wednesday, Trump called China’s Xi Jinping “extremely hard to make a deal with”, pointing to frictions after the White House raised expectations for a long-awaited phone call between the two leaders this week.

Meanwhile, the Bank of Canada held its key benchmark rate at 2.75%, citing the need to assess the effects of U.S. trade policy, but indicated another cut might be necessary if tariffs weaken the economy.

“The market has become a little insensitive to all the trade headlines until we have something more concrete”, said Angelo Kourkafas, senior global investment strategist at Edward Jones.

“The market is choosing to focus again on the fundamental factors…there’s been a lot of reversals in these news headlines, while at the same time economic data have continued to come in pretty strong, which has allowed the markets to look a little bit past those headlines.”

Data showed Canada’s services economy downturn eased in May, as firms grew more hopeful that trade and political uncertainty would become less of a drag on activity over the coming 12 months.

Canadian labor productivity rose by 0.2% in the first quarter.

On TSX, metal miners’ shares gained 0.7% tracking higher gold prices, while the healthcare subindex gained 0.6%.