FX.co ★ TSX Slips as Oil Drops and Trade Tensions Resurface

The S&P/TSX Composite Index declined by approximately 0.4%, falling below 24,910 on Monday, offsetting last week’s 1% gain. This downturn was largely influenced by decreasing oil prices and rising trade-policy tensions, impacting Canadian stocks negatively. The energy sector bore the brunt of the decline, with significant players such as Canadian Natural, Suncor, Imperial Oil, and Cenovus experiencing drops ranging from 1.6% to 2.7%. This occurred in the wake of OPEC+ announcing a second month in a row of accelerated output increases. Simultaneously, President Trump’s surprise decision to implement a 100% tariff on foreign-produced films has rekindled fears of wider retaliatory actions that might affect global demand for Canadian resource exports. Additionally, inconsistent messages from Beijing regarding trade negotiations with the U.S. have further dampened optimism for an imminent resolution.