FX.co ★ TSX Drops After Disappointing GDP Data

On Wednesday, the S&P/TSX Composite Index dropped by over 1%, falling below the 24,600 level, as investors absorbed the increasing signs of weakening economic activity in North America alongside ongoing challenges in trade policy. Canada's economy experienced a contraction of 0.2% in February, primarily due to a significant 2.5% decrease in mining and oil-and-gas output and a 0.5% drop in construction, underscoring the decrease in demand within the nation's commodity-driven sectors. Similarly, U.S. markets saw a notable downturn after the unexpected contraction of the U.S. GDP in the first quarter, highlighting the initial adverse impacts of tariff threats and the heightened policy uncertainty under the Trump administration. Nearly every sector on the TSX experienced losses, with consumer-spending-sensitive Shopify leading the decline, tumbling approximately 6%, while major energy companies such as Canadian Natural, Suncor, Imperial Oil, and Cenovus saw falls ranging from 1.2% to 2.6%. For the month of April, the TSX is on track to conclude with losses surpassing 1.5%.