FX.co ★ TSX Eases From Record High

On Friday, the S&P/TSX Composite fell by 0.2%, closing at 27,023. This drop marked a pullback from previous record highs, following a surprise announcement by President Trump imposing a 35% tariff on all Canadian imports outside of the USMCA agreement. This move unsettled sectors reliant on exports and financial services. Leading the decline were Canada's major financial institutions, including RBC, Brookfield, BMO, and Scotiabank, with shares decreasing between 0.6% and 1.1%. Export-dependent railway companies such as Canadian Pacific and Canadian National also saw declines of 0.9% and 0.7%, respectively, as investors anticipated disruptions in cross-border trade. Despite these challenges, domestic economic strength was evident, highlighted by June's robust labor market report, which saw the addition of 83,100 jobs and a reduction in unemployment to 6.9%. Additionally, building permits surged by 12% in May, reaching C$13.1 billion. These positive indicators have tempered expectations for a Bank of Canada interest rate cut on July 30th. Overall, the TSX experienced slight declines over the week.