FX.co ★ TSX Rebounds on Wednesday

The S&P/TSX Composite Index experienced an uptick of 0.2%, surpassing the 26,950 level on Wednesday. This gain was attributed to a momentary relief in trade tensions and fresh diplomatic engagement signals from the United States. The U.S.'s decision to defer its August 1st deadline for reciprocal tariffs offers a crucial extension for Canadian exporters, permitting them additional time to renegotiate contracts and finalize shipping strategies. This comes as the U.S. contemplates imposing 50% tariffs on copper and considers duties on semiconductors and pharmaceuticals. President Trump also hinted at impending communication with the European Union regarding mutually agreed baseline rates, mentioning that negotiations are "progressing well," and expressing a readiness to advance discussions. The rally was primarily driven by strong performances in the financial and energy sectors, though gains were tempered by the mining sector. On the economic side, the IVEY PMI rebounded into expansion territory at 53.3, indicating that private-sector activity remains vigorous. Moreover, Ottawa’s initiative to channel federal spending towards significant infrastructure projects has further enhanced investor confidence.