Canadian Stock Index Scales New High Amid Ongoing Trade Talks

(RTTNews) - Canadian stocks edged up to a fresh record on Wednesday despite weaker domestic manufacturing data and US private sector jobs data, as investors focused on the ongoing US-Canada trade talks.

After yesterday's holiday on account of Canada Day, the benchmark S&P/TSX Composite Index opened a few points lower than the previous session but swung over the day to reach an intraday high of 26,893.78 just an hour before closing and managed to settle at 26,869.66, up by 12.55 (or 0.05%).

Last month, following the G7 Summit, Canadian PM Mark Carney stated that the US and Canada were proceeding to close a trade deal within a 30-day period.

Last week, however, things took a bad turn last week when the 3% digital services tax imposed by Canada on American companies operating in Canada earned the displeasure of Trump.

Late last Friday, Trump announced halting all trade discussions with Canada and went on to state that his government would communicate the new tax slabs to Canadian imports within a week.

As around 75% of Canadian exports goes to the US, shocked by Trump's decision, Canada rescinded the tax levy. Further, the government stated that both nations would sign a trade deal by July 21.

Investors are now focusing on the progress of trade talks between Canada and the US as the July 9 deadline set by Trump for trade deal is fast approaching.

Today, the S&P Global Canada Manufacturing PMI data showed the numbers to have fallen to 45.6 in June from 46.1 in May. This is the fifth successive decline seen in factory businesses. An unpredictable US tariff policy has hit harder on factory production and new work orders. Firms have reduced stock piling and new hirings.

In the US, private payrolls data revealed an unexpected fall in June.

Investors are keenly watching the US Federal Reserve's decision on interest rate cuts in the coming weeks. A lower interest regime, which even Trump favors, could spark brisk global economic activity.

Major sectors that gained in today's trading were Communication Services (2.60%), Consumer Discretionary (2.39%), Healthcare (2.14%), and Energy (1.41%).

Among the individual stocks, Rogers Communications (7.18%), BCE (2.78%), Magna International (7.77%), and Bausch Health (6.39%) were the prominent gainers.

Major sectors that lost in today's trading were Utilities (0.38%), Financials (0.41%), IT (0.50%), and Consumer Staples (1.52%).

Among the individual stocks, Blackberry (8.15%), Metro Inc (3.31%), George Weston (2.59%), and Loblaw CO (2.25%) were the notable losers.

Specifically, Bombardier (25.35%) and Novagold Res Inc (9.29%) were the major gainers.