(RTTNews) – Canadian stocks declined on Monday as investors resorted to profit-taking from last week’s record high close. However, selling pressure was somewhat subdued amid renewed hopes of BoC rate cuts in line with anticipated US Fed rate cuts.
After opening lower than the previous week’s record close, the benchmark S&P/TSX Composite Index slid further into negative territory. Touching an intraday low of 28,138.70 within an hour, the index rose mildly to close at 28,169.94, down by 163.19 points (or 0.58%).
Notably, the index set a new record closing high last Friday, when it settled at 28,333.13.
Facing an uphill task of stabilizing the economy in the aftermath of 35% tariffs on its exports to the US, Prime Minister Mark Carney has been engaging all tactics. While Canadian officials are continuing negotiations with their US counterparts, ministers are reaching out to strike bilateral trade agreements with countries outside the US.
On Friday, Carney stated that Canada’s 25% tariffs on around $21 billion worth of US goods will go away beginning September 1, and economists feel this could pave way for smoother US-Canada dialogue and dissipate the trade-related inflation to a moderate degree.
The White House welcomed the move and US President Donald Trump stated that he will speak with Carney soon.
A new opinion poll shows that Carney’s Liberal party enjoys 39% support versus the opposition Conservatives party’s 41% popularity.
Beyond the tariff impact, housing, healthcare, and immigration matters are top three concerns among Canadians now. Carney’s political rival Pierre Marcel Poilievre shall be leading the Conservatives and analysts feel that he could pose another challenge to Carney’s measures.
With no major economic data anticipated today, tomorrow’s manufacturing sales numbers could provide a snapshot on the status of the Canadian manufacturing sector.
At the Jackson Hole Symposium on Friday, US Federal Reserve Chair Jerome Powell subtly hinted at lowering the borrowing rates next month, which revived optimism for a rate cut at the September meeting.
The Bank of Canada has held its policy rate at 2.75% for three consecutive meetings.
The July CPI reading, which showed core inflation easing to 2.4%, has reignited discussions on the possibility of lowering of lending rates by the Bank of Canada.
Major sectors that gained in today’s trading were Energy (0.40%), Consumer Staples (0.05%), and Materials (0.03%).
Among the individual stocks, Cenovus Energy Inc (2.07%), Parex Resources Inc (1.93%), Suncor Energy Inc (1.23%), and Metro Inc (0.32%) were the prominent gainers.
Major sectors that lost in today’s trading were IT (0.68%), Financials (0.91%), Industrials (1.26%), and Healthcare (1.54%).
Among the individual stocks, Computer Modelling Group (2.95), Bitfarms Ltd (2.84%), Sangoma Technologies Corp (2.41%), Bausch Health Companies Inc (2.50%), and Bird Construction Inc (2.78%) were the notable losers.
Novagold Res Inc (5.71%), Energy Fuels Inc (3.42%), and Ssr Mining Inc (2.62%) were among the prime market-moving stocks today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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