What’s going on here?
The Toronto Stock Exchange slipped as trade tensions simmered, with the S&P/TSX Composite Index dropping 53.85 points to 26,506. Battery metals surged, but healthcare stocks fell.
What does this mean?
Trade anxiety is making a comeback in Canada, posing challenges for investors as the country navigates potential tariff adjustments. Canada plans to modify metal counter-tariffs against the US by July 21, following G7 discussions. Meanwhile, federal policies aim to benefit Canadian suppliers by month’s end. Oil prices hit a five-month peak amid Middle East tensions, with West Texas Intermediate at $75.16 per barrel. In contrast, gold fell to $3,387.40 per ounce after the Federal Reserve kept rates steady yet hinted at future cuts.
Why should I care?
For markets: Navigating tricky trade waters.
Trade tensions could bring volatility to Canadian markets. The rise in the Battery Metals Index suggests a shift toward renewable energy, while healthcare struggles show broader economic anxiety. Keep an eye on Canadian policy changes impacting the metal and steel sectors.
The bigger picture: Long-term optimism faces hurdles.
A survey by the Canadian Federation of Independent Business shows slight optimism, but small businesses still face inflation and economic uncertainties. As new tariffs and initiatives emerge, their effects may ripple through the broader economy, impacting consumer demand and business confidence.