FX.co ★ TSX Pares Weakly Losses

The S&P/TSX Composite Index experienced a modest increase of approximately 0.2%, surpassing 29,800 on Friday, as it managed to reduce the week's prior losses. This movement occurred amidst investors' analysis of GDP figures, U.S. pricing data, and new trade policies. According to Statistics Canada's preliminary estimates, the real GDP showed minimal change for August. Gains in wholesale and retail sectors offset declines in mining, manufacturing, and transportation, alleviating growth concerns that had previously impacted long-term yields. Concurrently, the recent U.S. Personal Consumption Expenditures (PCE) report indicated largely stable inflation, with core PCE holding steady and a slight increase in headline inflation. This development bolstered expectations that the Federal Reserve might have more flexibility to lower rates later in the year, thereby encouraging risk-taking among investors. On the trade front, U.S. President Donald Trump introduced a new series of tariffs affecting branded pharmaceuticals, heavy-duty trucks, and kitchen cabinetry. In corporate developments, a nationwide strike by Canada Post on Thursday posed challenges for logistics and could potentially impact retail and distribution companies. Most major industry sectors saw gains, with notable performances in technology, financials, energy, and mining.