Canada’s main stock index was subdued on Tuesday, pressured by technology stocks, as investors awaited potential trade deals between the U.S. and its partners.
The Toronto Stock Exchange’s S&P/TSX composite index was down 0.03% at 27,307.73 points.
Trade negotiations appeared shaky after EU diplomats said the 27-nation bloc was considering broader counter-measures against Washington.
Prospects for an interim trade deal between India and the U.S. have also dimmed, according to Indian government sources.
Meanwhile, U.S. Treasury Secretary Scott Bessent announced plans to meet his Chinese counterpart next week, potentially discussing an extension to the August 12 deadline set for tariffs on China.
The Bank of Canada said in a survey Canadian businesses see less chance of a worst-case tariff scenario but remain cautious, while keeping hiring and investment in check.
“The TSX should do relatively well throughout this earnings period,” said Ian Chong, portfolio manager at First Avenue Investment Counsel.
He added that while there will be a tariff impact, it will be “relatively muted” since the full-blown 35% tariff on Canada has not been set yet.
On the TSX, materials stocks gained 1.1% after gold prices retreated from a five-week high.
Conversely, the information and technology subindex slipped 1.8%, tracking declines in its Wall Street peers.
In the U.S., Alphabet and Tesla will kick off the results season for the “Magnificent Seven” stocks on Wednesday.
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