The S&P/TSX Composite Index rose by 0.9%, reaching an all-time high of 27,387 on Thursday. This surge was primarily attributed to significant gains in the consumer staples and technology sectors, amid new developments in trade negotiations. Alimentation Couche-Tard experienced an 8.3% increase in its stock value after withdrawing its $46 billion bid for Seven & i, thus freeing funds for potentially more profitable ventures. Shopify also saw a substantial jump of 6.2% due to strong merchant performance metrics, despite a decline in the materials sector caused by softer commodity prices.
In parallel, the Canadian government's decision to implement steel-tariff quotas for certain FTA partners, while maintaining exemptions under the USMCA, provided reassurance that the domestic steel industry would be protected from the U.S. administration's 50% tariffs. Additionally, steady U.S. retail sales figures and stable jobless claims contributed to the continued appeal of risk assets. Canadian economic indicators also painted a positive picture, with a 0.1% increase in wholesale trade in May and a 2.8% rise in home sales in June, further underscoring the robustness of Canada's economic growth.
