Canada’s commodity-heavy main stock index scaled back from its record high on Monday, pressured by mining shares, while investors assessed a trade deal between the U.S. and the European Union.
The Toronto Stock Exchange’s S&P/TSX composite index was down 0.5% at 27,356.44 points.
The U.S. struck a framework trade agreement with the EU on Sunday, imposing a 15% tariff on most EU goods and requiring the bloc to invest around $600 billion in the U.S.
Other countries are also looking to finalize trade deals before the August 1 tariff deadline. But U.S. President Donald Trump said on Friday the country may not reach a trade agreement with Canada.
“For whatever reason, the U.S. does not feel Canada is important enough to get a deal done, at least with any urgency… and that obviously is a big problem,” said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.
But in general, investors are focused on artificial intelligence, chips, semiconductors and U.S.-China relations at the moment, Small said, adding that if those negotiations go well, “it is possible that the market could withstand the non-negotiations between Canada and the U.S.”
Top U.S. and Chinese economic officials met in Stockholm on Monday to resume talks to resolve longstanding economic disputes at the centre of a trade war between the world’s top two economies, aiming to extend a truce by three months.
On TSX, mining stocks fell 2.4%, tracking lower gold prices.
New Gold slipped the most, down 6.6%, after the company reported second-quarter results.
The energy subindex gained 1.2%, tracking higher oil prices.
Company-wise, First National Financial said it had agreed to be acquired by private-equity firm Birch Hill Equity Partners and asset manager Brookfield Asset Management in a C$2.9 billion ($2.12 billion) deal. Its shares jumped 13.1%.
This week, investors will monitor policy decisions from the U.S. Federal Reserve and the Bank of Canada, and earnings from some “Magnificent Seven” companies.
Comments
Comments are closed for this article.