Canadian Stock Index Scales New High Amid Strong Tariff Pressure

(RTTNews) - Canadian stocks hit a new high on Thursday as investors await the trade agreement between Canada and the US despite the US pushing the pedal harder on tariffs.

After opening near yesterday's close, the benchmark S&P/TSX Composite Index entered positive territory and climbed to an intraday high of 27,120.00 post noon.

Holding the momentum, the index settled at 27,082.30, up by 109.98 (or 0.41 %).

The tariff tension initiated by US President Donald Trump earlier this year continues to weigh on market sentiments.

Trump extended the "reciprocal tariff" suspension period from July 9 to August 1. Already the UK, China, and Vietnam are done with trade agreements with the US. India and the EU are close on the heels.

As other countries were grappling to find ways to reach a deal, Trump announced an additional 10% tariff on the 11-member BRICS nations of which China and India are major powers. China responded merely stating that it did not want any confrontation. Other nations in the alliance have been silent on this issue.

Continuing his aggressive posturing, Trump further announced super-sized 50% and 200% levies on copper and pharmaceutical imports to the US, respectively, creating uneasiness across nations.

Yesterday, he announced that the US would impose a 50% tariff on imports from Brazil, alleging improper treatment to ex-Brazilian leader Jair Bolsonaro.

Investors are keenly awaiting the Canada-US trade agreement that PM Mark Carney assured of happening by July 21, during his visit at G7 Summit.

The Canadian government and companies are hunting for fresh markets outside of the US and have so far found decent success. Thee Canadian foreign minister is pushing to seal free-trade pacts with Southeast Asian countries.

Exports to non-US nations rose 5.7% in May, a new high. Now the UK, Singapore, and Italy are importing more from Canada.

Internally, the 5-year bond yield rose to 2.96% today, marking a 0.04% increase from the previous session. Over the past month, the yield has moved up by 0.02 points.

Major sectors that gained in today's trading were Industrials (0.80%), Communication Services (0.46%), Financials (0.59%), and Real Estate (0.37%).

Among the individual stocks, Air Canada (3.74%), Bombardier Inc (3.04%), Brookfield Corporation (2.03%), and Rogers Communication (2.09%) were the prominent gainers.

Major sectors that lost in today's trading were Consumer Staples (0.41%) and Energy (0.33%).

Among the individual stocks, Advantage Oil & Gas (2.10%), Terravest Capital Inc (1.81%), Loblaw CO (%), George Weston Ltd (0.98%), and Metro Inc (0.90%) were the notable losers.

Energy Fuels Inc (16.27%), Transalta Corp (5.91%), and Air Canada (3.74%) were among the significant market movers.