FX.co ★ TSX Ends Lower, Week Still Positive

On Friday, the S&P/TSX Composite Index decreased by 1.2% to settle at 30,109, which reduced the week's gains. Nevertheless, the index remains up by 0.9% for the week due to a significant drop in major mining stocks, while investors considered statements from the Bank of Canada's governor and the Prime Minister's response. Bank of Canada Governor Tiff Macklem noted that economic growth continues to be "soft" and cautioned that further repercussions from President Trump's tariff policies could worsen this weakness. In the second quarter, Canada's GDP experienced a 1.6% annualized contraction, primarily due to a sharp decline in exports. At the same time, Prime Minister Mark Carney minimized suggestions to retaliate against US tariffs, emphasizing that both nations are engaged in extensive discussions about key sectors. The decline in stock values was widespread across all nine sectors, with companies such as Agnico Eagle, Wheaton Precious, Barrick, and Franco-Nevada experiencing losses ranging from approximately 5.6% to 8.1%. This downturn occurred after bullion prices receded from record highs amid easing investor concerns over US-China trade tensions, following President Trump's characterization of a proposed 100% tariff as "unsustainable," hinting at a possible easing of tensions before his meeting with President Xi Jinping.