FX.co ★ TSX Eases From Record High

The S&P TSX Composite Index slipped below the 33,000 threshold on Monday, retreating from the record highs achieved last week. This downturn was influenced by stronger inflation figures and a general withdrawal from riskier assets, affecting investor sentiment. Unexpectedly, the annual inflation rate increased in December, heightening worries about inflationary pressures. This occurred even as the Bank of Canada’s favored core inflation metrics delivered unexpected positive surprises, creating a mixed outlook for monetary policy. Among the biggest decliners, Shopify dropped nearly 2%, while Canadian Pacific and Canadian National Railways both saw declines exceeding 1%. Bank stocks also faced downward pressure, driven by concerns that rising interest rates could intensify issues related to household debt and loan defaults. On the flip side, Agnico Eagle and Wheaton Precious Metals experienced gains of over 1%, buoyed by an uptick in gold prices. This rise in gold was prompted by President Donald Trump's threat to impose tariffs on select European nations, which increased the demand for the precious metal.