FX.co ★ TSX Extends Recovery

On Tuesday, the S&P/TSX Composite Index saw an uptick of approximately 0.6%, surpassing the 24,000 mark. This rise came on the heels of President Trump's proposal for temporary relief from the 25% tariffs on North American auto imports. Such a policy adjustment has instilled optimism among investors, primarily benefiting sectors associated with manufacturing and automotive supply chains in Canada. By mitigating cost burdens on carmakers and parts suppliers, this move could enhance production efficiency and competitiveness. All nine major sectors experienced gains, with the financial and energy sectors spearheading the surge. Prominent institutions, including RBC, TD Bank, Brookfield, BMO, and Scotiabank, saw increases ranging from 0.7% to 1.5%, while energy leaders Canadian Natural and Cenovus each advanced by over 1%. From an economic perspective, Canada's annual inflation rate declined to 2.3% in March, down from 2.6% in February, outperforming market predictions and falling below the Bank of Canada's 2.5% forecast.