FX.co ★ TSX Edges Lower on Monday

On Monday, the S&P/TSX Composite Index experienced a slight decline, slipping roughly 0.1% to drop below the 26,680 level. This was primarily due to losses in the energy sector, which overshadowed gains in other areas. Despite this downturn, Canada announced its last-minute repeal of the digital services tax, a move intended to revive trade discussions with Washington and stave off imminent US tariffs, with the deadline looming on July 9th. Energy equities remained under pressure due to indications that OPEC+ intends to follow through with its scheduled augmentation in oil output set for August. This prospect continues to place a strain on oil prices and the performance of major energy companies. Meanwhile, sectors sensitive to export fluctuations experienced modest relief. Telecom and technology stocks, which were poised to bear the brunt of the previous 3% tax on digital revenues, led these gains. From a broader economic perspective, markets took into account the preliminary GDP estimate for May, reflecting another monthly decline of 0.1%. This further underscores the persistent vulnerability of the Canadian economy to external trade disruptions, even as Ottawa works diligently to conclude a fresh agreement by July 21st.