Investors assess US-Canada Trade Talks and TSX increases
Investors assessed the revival in trade talks between Washington & Ottawa.
The S&P/TSX Composite index rose 0.2% to 26733.42 point, logging its fourth consecutive quarter of positive growth.
Donald Trump called off Friday's trade talks over Canada’s digital services tax that targets U.S. tech firms. He described it as a "blatant" attack.
Canada scrapped its tax late Sunday night, just hours before the date it was due to go into effect. The move was made to try and restart negotiations.
The Canadian Finance Ministry announced that Prime Minister Mark Carney will continue trade negotiations with Trump to reach an agreement by the 21st of July.
Colin White, CEO of Verecan Capital Management, said that the biggest challenge facing the market was to determine how quickly it would react to every step. We have yet to negotiate a trade deal and could face some additional challenges.
Investors will be watching for signs of progress in the trade arena as Trump's tariff deadline of July looms.
The TSX Healthcare index rose 2%. Bausch Health was up 4.4%, and Sienna Senior 1.2%.
Communications stocks rose by 0.9%.
Energy stocks, on the other hand, led losses in this sector, falling 0.6%, as oil prices stabilized, Middle East risks eased, and markets weighed a possible OPEC+ production increase in August.
Baytex Energy fell 1.8% and International Petroleum dropped 1.7%.
MDA Space's individual shares rose by 3.2% following the announcement of a contract extension for the Canadian Government to provide continuous space-based maritime security and awareness.
Methanex, a producer of methanol, fell to the bottom by 2.2% on the benchmark index. Reporting by Sukriti and Twesha in Bengaluru, editing by Shreya biswas
(source: Reuters)
