FX.co ★ TSX Eases From Record High

The S&P/TSX Composite fell slightly below the 27,370 level on Friday, retreating from its peak as losses in export-sensitive railway stocks offset gains from technology and energy sectors. In a bid to avoid the looming imposition of 35% tariffs on steel and aluminum set for August 1st, Prime Minister Mark Carney has sent a trade envoy to Washington for urgent discussions with President Trump. This move has fueled optimism in the market that these vital industrial inputs for Canada might escape the tariffs. Despite this, shares of Canadian National and Canadian Pacific both dropped over 1.5%. This decline followed alerts about a slowdown in US manufacturing, decreased intermodal container volumes, and a reduction in phosphate and potash shipments, all of which are expected to diminish freight tonnage in the second half of the year—a perspective supported by Transport Canada data indicating lower year-on-year grain traffic. In contrast, energy stocks remained solid due to continuing geopolitical supply concerns in the Middle East, which supported crude oil prices. Overall, the Toronto stock market gained approximately 1.2% over the week, setting new record highs.