FX.co ★ TSX Drops from Record Highs

On Friday, the S&P/TSX Composite Index dipped by approximately 0.4%, slipping below the 27,000 mark. This decline marked a retreat from record highs amid renewed market turmoil following President Trump's unexpected declaration of a 35% tariff on all Canadian imports not covered by the USMCA, set to take effect on August 1st. This announcement significantly impacted both the financial sector and industries reliant on exports. Notably, Canada's major banks, such as RBC, TD, BMO, and Scotiabank, experienced declines ranging from 0.6% to 1%. Railroads, like Canadian Pacific and Canadian National, also faced downturns of over 1%. Despite a strong domestic economic environment, highlighted by the June labor report which revealed 83,100 new jobs and a reduction in the unemployment rate to 6.9%, the potential for a Bank of Canada rate cut on July 30th was overshadowed by the trade tensions dampening equity risk enthusiasm. Consequently, the Toronto exchange appeared set to close the week with slight losses.