FX.co ★ TSX Sets Fresh Record High

The S&P/TSX Composite Index inched up by 0.3% to close at an unprecedented peak of 26,616 on Thursday. This surge was propelled by investor responses to milder US economic data and escalating geopolitical tensions. Indicators of a slowing US labor market, coupled with consumer and producer price indices falling short of expectations, have fueled market speculation regarding a potential Federal Reserve rate cut as early as September. Market actors have now factored in a potential 50 basis point rate reduction by 2025. In terms of international affairs, tensions heightened as the US directed the evacuation of its embassy staff in Baghdad due to Iranian threats targeting American military installations. Concurrently, President Trump signaled the imposition of unilateral tariffs on key trade allies, prompting a rush towards safe-haven assets like gold. This resulted in a rise of more than 1% for gold mining companies such as Agnico Eagle, Wheaton Precious Metals, Barrick Gold, and Franco-Nevada, driven by climbing gold prices. Meanwhile, energy stocks trimmed earlier losses in the face of a slight downturn in oil markets.