TSX Edges Lower on Monday âšī¸
Canada's S&P/TSX Composite Index declined 0.1% due to energy sector losses, while the country repealed its digital services tax to improve trade relations with the US and avoid potential tariffs.
Macroeconomic indicators suggest ongoing economic challenges with modest GDP contraction, while trade policy adjustments indicate potential stabilization efforts. The energy sector's performance and trade negotiations create balanced market dynamics.
Canada Drops Digital Services Tax to Revive U.S. Trade Talks âšī¸
Canada will cancel its planned Digital Services Tax to restart trade negotiations with the United States, aiming to prevent potential tariffs and restore bilateral trade relations.
Geopolitical trade tensions between Canada and the U.S. could create market uncertainty, potentially affecting international trade-related investments and indices with cross-border exposure.
Loonie Edges Up After Canada Rescinds Digital Services Tax âšī¸
Canadian Finance Ministry rescinded a digital-services tax to advance trade negotiations with the US, while economic indicators suggest a potential GDP contraction in Q2.
Geopolitical developments indicate potential trade resolution, but underlying economic signals remain cautious. Diplomatic maneuvering suggests a balanced approach to resolving trade tensions with potential moderate economic implications.
TSX Pressured by Renewed Tariff Threats âšī¸
The S&P/TSX Composite Index declined 0.2% due to trade tensions with the US, potential tariffs, and weak economic indicators, with mining stocks experiencing significant drops.
Geopolitical trade uncertainties and economic contraction signals pose medium-term risks to market performance, particularly impacting export-dependent and mining sectors.
Canadian Dollar Losses Ground After Trade Negotiation Fallout âšī¸
The Canadian dollar weakened past 1.37 per USD due to US trade tensions, potential tariffs, and economic uncertainty, with oil prices remaining subdued and trade-sensitive sectors facing challenges.
Trade policy uncertainty and potential tariffs create significant economic headwinds for Canada, impacting export-oriented sectors and currency valuation. The combination of US trade threats and potential economic contraction signals medium-term risks.
TSX Declines, Still Poised for Weekly Gains âšī¸
The S&P/TSX Composite Index declined 0.2% due to falling gold prices, economic stagnation, and reduced safe-haven demand, with mining stocks experiencing significant drops and Canada's economy contracting in April and May.
Economic contraction signals potential broader market challenges, with mining sector weakness and reduced safe-haven demand indicating near-term market pressures across resource and equity segments.
Canada 10-Year Bond Yield Holds Strong âšī¸
Canadian 10-year bond yields rose above 3.36% due to increased government borrowing, persistent core inflation, and potential defence spending, while economic indicators suggest stagnation.
Macroeconomic signals present mixed implications with elevated yields counterbalanced by economic weakness, suggesting potential moderate market adjustments without dramatic shifts.
Canadian Economy Set for a 0.1% Contraction in May âšī¸
Canadian GDP decreased by 0.1% in May 2025, with declines in mining, oil and gas extraction, public administration, and retail trade, partially offset by increases in real estate sectors.
Marginal economic contraction suggests potential economic softening, with mixed sectoral performance indicating resilience in some areas while others experience challenges. The slight decline might signal cautious economic conditions without triggering significant market disruption.
Canada Wholesale Sales Expected to Decline Again in May âšī¸
Canada's wholesale sales are expected to decline by 0.4% in May 2025, continuing a downward trend from a 2.3% drop in April, primarily due to weakness in machinery, equipment, and supplies sales.
Persistent decline in wholesale sales signals potential economic contraction, indicating reduced business investment and potential supply chain challenges. The consecutive monthly drops suggest broader economic softness that could impact market sentiment and investment strategies.
TSX Swings Between Gains and Losses âšī¸
The S&P/TSX Composite Index experienced mixed trading with resource and financial sectors gaining, driven by dovish monetary signals and commodity price movements, while technology stocks like Shopify declined.
Mixed market signals suggest balanced economic conditions with potential sector rotation. Resource and financial sectors showed resilience, indicating underlying market strength, while technology sector volatility presents a counterbalancing effect.
Canada Wage Growth Edges Higher âšī¸
Canadian average weekly earnings rose 4.4% year-over-year in April 2025, with significant gains in information, real estate, finance, and educational sectors, while utilities and retail trade experienced declines.
Wage growth indicates economic resilience and potential consumer spending strength, with sectoral variations suggesting underlying economic shifts and opportunities in knowledge-based industries.
TSX Falls From Record High âšī¸
The S&P/TSX Composite Index declined 0.6%, with energy and mining stocks falling, while BlackBerry's tech sector performance stood out with a surprising GAAP profit and stock surge.
Market volatility reflects mixed signals across sectors, with resource-heavy segments experiencing downturn while technology shows resilience. Soft commodity prices and geopolitical tensions contribute to market uncertainty.