Canada’s main stock index fell on Wednesday, after six straight sessions of gains, as investors took a breather while awaiting signals from ongoing trade developments.
The Toronto Stock Exchange’s S&P/TSX composite index was down 0.13% at 25,583.02 points after rising 2.6% in the past six sessions and hitting a three-month high last week.
Markets have been rising on trade optimism after a limited U.S.-UK agreement and the United States and China pausing their fierce tariff dispute assuaged fears about a global economic slowdown.
A 90-day tariff pause announced by the U.S. on April 9 for countries other than China, along with solid earnings reports and a cooler-than-expected U.S. inflation reading, helped the index regain ground from early April lows.
“I think all the markets are taking a little bit of a breather now after the recent rallies”, said Michael Sprung, president at Sprung Investment Management.
“The inflation reading and the U.S.-China situation buoyed the market in the immediate past but … expectations of what is likely to happen are becoming more and more uncertain. And so I think the markets going to be looking for some direction”.
TSX gains on US-China tariff agreement
Federal Reserve Vice Chair Philip Jefferson noted that recent inflation data indicate progress toward the Fed’s 2% target, yet the outlook remains uncertain as potential new import taxes could elevate prices.
On TSX, mining stock fell 1.9%, tracking lower gold prices, as easing U.S.-China tensions dimmed bullion’s safe-haven appeal.
Energy subindex slipped 0.6% after oil prices fell as traders eyed a potential jump in U.S. crude inventories, while OPEC lowered its oil supply growth forecast for producers outside OPEC+.
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