FX.co ★ TSX Dips, But Post Weekly Gain

The S&P/TSX Composite Index experienced a slight decline of 0.1%, closing at 26,175 on Friday. This marked the second consecutive day of minor retreat following Wednesday's record high. The dip was influenced by unexpectedly strong economic data, which bolstered the belief that the Bank of Canada will maintain its current interest rates at the upcoming meeting. In the first quarter, Canada's GDP expanded by an annualized rate of 2.2%, surpassing the forecasted 1.7% growth. This growth was primarily fueled by an increase in exports and business inventories, a strategic move made partly in response to possible US tariffs, although domestic demand remained subdued due to ongoing economic uncertainties and the lingering effects of elevated interest rates. The robust economic figures led rate traders to speculate that policy easing might be paused. Among banking stocks, there was a mixed performance after a busy earnings week; RBC, CIBC, and Scotiabank each saw increases of about 0.5%, while TD Bank found itself slightly declining. Overall, the TSX managed a 0.6% gain for the week.