FX.co ★ TSX Drops, Still Poised for Weekly Gains

The S&P/TSX Composite index experienced a decline of approximately 0.6%, falling to below the 30,300 level on Friday. This pullback reduced the week's gains but left the index holding a modest increase of just over 1%. The downturn was primarily driven by significant selloffs among leading mining companies, as investors considered recent comments from the Bank of Canada Governor, Tiff Macklem, and Prime Minister Mark Carney. Governor Macklem noted that economic growth remains "soft" and cautioned that the spillover effects from President Trump's tariff policies could intensify existing economic weaknesses. Canada's GDP contracted at an annualized rate of 1.6% in the second quarter, largely due to a significant decrease in exports. In contrast, Prime Minister Carney minimized the pressure to retaliate against U.S. tariffs, highlighting ongoing comprehensive discussions between the two nations on critical sectors. The decline was widespread, affecting all nine sectors, with companies like Agnico Eagle, Wheaton Precious Metals, Barrick Gold, and Franco-Nevada experiencing notable losses of approximately 2.6% to 3.5%. These declines followed a retreat in bullion prices as President Trump stated that the existing tariffs on China were "not sustainable," and confirmed plans for a meeting with President Xi Jinping.