Canada’s main stock index dipped slightly on July 8, weighed down by a decline in major mining stocks as investors reacted to fresh U.S. trade tensions. The resource-heavy S&P/TSX Composite Index slipped 0.2%, closing at 26,959.65.
The market was unsettled after U.S. President Donald Trump announced plans to sharply raise tariffs on imports from 14 countries, including Japan and South Korea, starting August 1—though he left room for possible negotiations.
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Gold prices fell, dragging mining stocks down by 2.4%. SSR Mining (TSE:SSRM) and Orla Mining (TSE: OLA) led the losses, dropping 6.1% and 6.5%, respectively. In contrast, the energy sector posted a 1% gain, with Baytex Energy (TSE: BTE) surging 6.1% to lead the index. Industrials rose 0.7%, while communication services climbed 1.8%, helped by a 2.9% rise in a major telecom stock.
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Despite the mild decline, analysts see signs of underlying strength. “The TSX is consolidating after a strong run, but technical momentum is building, which bodes well for further gains,” said Brandon Michael, senior research analyst at ABC Funds.
Among individual movers, Mullen Group fell 1.1% after CIBC downgraded its rating on the logistics firm.
On the economic front, June’s Ivey PMI showed the fastest growth in Canadian business activity in four months, alongside a pickup in prices. Meanwhile, a government official revealed that Canada’s finance minister has directed federal departments to identify cost-saving opportunities, cut program overlaps, and reallocate funds toward key priorities.
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