FX.co ★ TSX Gives Up Record High

On Tuesday, the S&P/TSX Composite Index declined by 0.5% to settle at 27,054, stepping back from recent record highs. This decrease was influenced by adjustments in Canada's financial markets in response to persistent domestic inflation pressures and the heightened risk of trade conflicts. June's consumer price index rose to 1.9%, while the trimmed-mean core rate remained high at 3%, solidifying expectations that the Bank of Canada will maintain its overnight rate at 2.75% instead of considering rate cuts. This outlook led to profit-taking in sectors sensitive to interest rates. Concurrently, President Trump's reiterated threat of imposing 30% tariffs on European Union and Mexican imports—alongside existing tariffs on Canadian goods not covered by USMCA exemptions—rekindled worries about the impact on cross-border trade for resource and automotive exporters. Energy companies saw significant losses, with Canadian Natural Resources dropping 1.4%, Suncor Energy falling 0.9%, and Imperial Oil decreasing by 1%. Additionally, Wheaton Precious and Barrick Gold both declined over 0.7%, Shopify fell approximately 1.3%, and financial stocks also experienced a downturn.