FX.co ★ TSX Struggles for Direction

On Friday, the S&P/TSX Composite Index lingered just below stability, resting at the 27,030 mark, as investors evaluated the threat of impending U.S. tariffs alongside new domestic economic data. With President Trump’s July 9 deadline looming and notices indicating potential tariffs as high as 70% on numerous imports, sectors reliant on commodities and exports felt the strain. While a modest rebound in WTI crude offered some relief to energy stocks, caution prevailed due to anticipated increases in OPEC+ production. Gold miners found only slight support as concerns mounted over the fiscal impact of Trump’s $3.4 trillion tax-and-spending proposal. Meanwhile, despite initial gains, stocks like Royal Bank and Shopify retreated as manufacturing and materials sectors faced challenges from cooling global demand and stricter U.S. trade policies. Domestically, Canada witnessed its private sector activity decline for the seventh consecutive month, highlighted by a June merchandise trade deficit of $5.9 billion, signaling a tenuous recovery. Nevertheless, the TSX managed to extend its weekly gain to over 1.2%, reaching new record highs earlier in the week.