FX.co ★ TSX Poised to Set Record High

The S&P/TSX Composite Index maintained a level just above the flatline, closing at 27,390 points on Wednesday. This steadiness comes amid renewed optimism surrounding international trade and a decrease in domestic cost pressures. The recent trade agreement negotiated by President Trump with Japan, which includes a reduction of auto tariffs to 15% and promises a US$550 billion investment, had a positive impact on Canada's export sectors. This uplift benefited major players in the auto parts, machinery, and materials sectors. Additionally, President Trump's talks with EU negotiators have fueled expectations for a US-EU trade deal by August 1st. On the economic front, Statistics Canada reported a 0.2% decrease in the Housing Price Index for June, marking the third consecutive month of declining shelter costs. This trend supports the likelihood that the Bank of Canada will opt to maintain current borrowing rates. Notably, shares of Brookfield, Suncor, and Ivanhoe Mines each rose between 1% and 2%. Conversely, Canadian National Railway experienced a decline of over 3% in their share value due to reported second-quarter revenues of C$3.14 billion, which did not meet forecasts, attributed to a 1.4% reduction in freight volumes.