Energy, mining shares drag TSX lower

Canada's benchmark stock index dipped on Wednesday as investors assessed updates related to tariffs and important U.S. inflation statistics.

The S&P/TSX Composite index fell 0.1% to 27,027.81.

As part of a new agreement, U.S. president Donald Trump announced that a 19% duty would be placed on Indonesian products. This was done ahead of the August 1 deadline for tariff increases.

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David Eby, Premier of British Columbia, told Bloomberg News that he wants to limit softwood lumber exports from Canada to the United States to reduce some trade friction.

Jay Bala is the co-founder and CEO of AIP Asset Management. He said, "There are a lot people talking about the tariffs right now. We shouldn't be complacent. It will eventually have an impact on the real world, so it's better to prepare."

In the U.S. producer prices remained stable in June, defying predictions as higher costs of tariff-hit goods was offset by a decline in services.

Data released on Tuesday showed that Canada's annual inflation rate rose from 1.7% to 1.9% between May and June.

On TSX, mining shares fell 0.5%. Energy stocks dropped 0.8% in line with the fall in oil prices, Baytex Energy being down 1.7%.

Consumer staples, on the other hand, added 0.4% while financials and real estate both gained over 0.2%.

Aura Minerals, a Canadian gold and cobalt miner, saw its shares fall 3.8% after announcing that it planned to raise $196.4 millions from an initial public offering in the United States.

Equinox Gold Corp's stock rose by 2.1% following an upgrade of the company's credit rating by brokerage TD Cowen. Lundin Gold dropped 4% after TD Cowen lowered its rating.

Cogeco Communications fell 3.9% following the company's quarterly results that were below expectations. (Reporting and editing by Twesha Dhikshit in Bengaluru, Sukriti Gupta)

(source: Reuters)