FX.co ★ TSX Gives Up Record High

On Wednesday, the S&P/TSX Composite Index dipped by 0.4%, closing at 26,329. After reaching an all-time high, the market took a step back as investors processed recent trade and monetary developments. The Bank of Canada opted to maintain its benchmark interest rate at 2.75%, highlighting the need to evaluate the ramifications of US trade policies. However, the bank cautioned that if tariffs adversely affect the economy, future rate cuts might be necessary. This decision was supported by April's inflation figures, which indicated a decrease in headline CPI towards the target, while core measures remained high. Concurrently, negotiations between Ottawa and Washington regarding potential exemptions from the Trump administration's increased steel and aluminum tariffs have mitigated concerns of broader trade disruptions, offering some protection to export-reliant sectors. The stock market predominantly experienced declines, particularly in energy stocks, as oil prices dropped. This decline followed Saudi Arabia's indication of a potential significant increase in production, raising concerns about an oversupplied market.