FX.co ★ TSX Gives Up Record High

The S&P/TSX Composite Index declined by 0.3% to dip below the 26,000 threshold on Wednesday. This downturn followed record highs and was influenced by increasing trade and fiscal uncertainties, along with inconsistent domestic data, which collectively dampened risk appetite. Tensions surrounding US Congress's inaction on President Trump's proposed tax legislation, along with slow progress in pivotal trade discussions, exerted pressure on sectors sensitive to exports, casting doubts over cross-border demand. In Canada, concerns about the robustness of the real estate market intensified as April's new housing price index fell by 0.4%, interrupting two months of stability. At the same time, Canada's leading banks disclosed more than C$1 billion in second-quarter loan-loss provisions, signaling heightened caution in light of high household debt levels. On the policy side, an increase in core inflation to 2.9% led to a reduced likelihood of a rate cut in June, with the probability now standing at 35%. Among the sectors, technology and financial stocks experienced notable declines, with Shopify and Manulife Financial each dropping by approximately 1.5%.