TSX Rises as US Pauses New Tariffs

The S&P/TSX Composite Index rose nearly 1% to trade above 36,500 after US President Donald Trump paused new tariffs on Canadian goods. Trump announced late Tuesday that he was putting a three-day pause on the new 50% tariffs that were set to take effect on Wednesday, saying the two countries had reached a deal. The prospect of a deal lent support to Canadian exporters, with Magna International adding 1% and Nutrien rising nearly 2%. Oil prices hit a three-week high as uncertainty over shipping through the Strait of Hormuz and ongoing supply disruptions persisted, supporting energy producers. Suncor and Tourmaline Oil added about 1%. Gold prices were supported by a weaker dollar as global bond yields stabilized, boosting mining stocks. Agnico Eagle jumped 7%, while Barrick and WPM rose about 6% each. Meanwhile, financials remained pressured amid energy-driven inflationary pressures stemming from the Middle East conflict and ahead of the release of the US Fed's July meeting minutes.

Futures tracking Canadian equities edged higher on Wednesday after US President Donald Trump paused new tariffs on Canadian goods. Trump announced late Tuesday that he was putting a three-day pause on the new 50% tariffs that were set to take effect on Canadian goods on Wednesday, saying the two countries had reached a deal. The prospect of a deal lent support to Canadian exporters. Oil prices hit a three-week high as uncertainty over shipping through the Strait of Hormuz and ongoing supply disruptions persisted, supporting energy producers. Gold prices were supported by a weaker dollar as global bond yields stabilized, supporting mining stocks. Meanwhile, financials and the broader index remained under pressure amid energy-driven inflationary pressures stemming from the Middle East conflict and ahead of the release of the US Federal Reserve’s July meeting minutes.

The S&P/TSX Composite Index fell 0.8% to close at 36,368 on Tuesday, weighed down by losses in the mining and financial sectors amid elevated global bond yields and uncertainty surrounding the Middle East conflict. Global bond yields traded near multi-decade highs, as fading hopes for a peace deal between the US and Iran and rising energy costs rekindled inflation concerns. Major banks closed lower, with RBC losing 1.3%, TD Bank shedding 1.7%, BMO down 1.2%, CIBC losing 1.3% and Scotiabank retreating 1.1%. Miners also declined as gold prices slipped, with Agnico Eagle down 0.8%, Barrick losing 0.9% and WPM shedding 2.8%. Most technology stocks tumbled, tracking a selloff in US chipmakers, with Shopify losing 1.2% and Celestica sinking 8.4%. In contrast, energy stocks gained on rising oil prices, with Canadian Natural up 0.9% and Suncor adding 1.7%. NexGen Energy (-4.4%) is discussing a potential equity stake with BHP in its Rook I mining project in Saskatchewan, CEO Leigh Curyer said.