03-07-2025
- Business
- Business Recorder
TSX hits record high as investors assess economic data, trade talks
Canada's main stock index hit a record high on Thursday as investors assessed economic data from Canada and the United States, while a U.S.-Vietnam trade pact renewed optimism about global trade agreements ahead of the July 9 tariff deadline.
The S&P/TSX composite index gained 0.3% at 26,952.6 points.
Data showed that Canada's trade deficit in May was as expected and narrowed after April's record-breaking numbers as total exports rose, and imports fell.
Exports and imports to the U.S. dropped to their lowest levels in May, excluding the pandemic year of 2020.
Meanwhile, U.S. President Donald Trump signed a trade deal with Vietnam on Wednesday.
'It looks as if we're moving towards more certainty with respect to the tariff situation…as we get closer to an outcome that's so positive, the markets begin to get a little bit excited,' said Robert Gill, portfolio manager at Fairbank Investment Management.
On the TSX, technology stocks led sectoral gains with a 1.4% rise. Cybersecurity firm BlackBerry rose 3.3%.
Conversely, an index of communication stocks fell about 1%.
Energy stocks fell 0.5% tracking a decline in oil prices. Nuvista Energy fell 3.2% after announcing updated annual production guidance due to third party midstream delays.
Mining shares edged 0.2% lower, tracking a fall in gold and copper prices.
Copper miners Capstone Copper down 2.1%, Teck Resources down 2.3%, and Ero Copper down 2.7%, were among the bottom performers on the main index.
Also supporting market sentiment was the Trump administration lifting export restrictions on Chinese-bound shipments from chip design software developers and ethane producers.
In the U.S., data showed job growth was solid in June while the unemployment rate fell to 4.1%.
Additionally, the U.S. House of Representatives advanced Trump's sweeping tax-cut and spending bill, paving the way for a possible vote on the legislation later in the day ahead of the July 4 holiday.
