Canadian Stocks Rise Modestly As Optimism About PM Stays Strong

(RTTNews) - Canadian stocks ended slightly higher on Monday despite the ongoing tariff uncertainty, benefitting from expectations of a US Fed rate cut and renewed faith in PM Mark Carney's measures to rebuild the economy.

After opening just a little lower than the previous close, the benchmark S&P/TSX Composite Index swung back and forth across the unchanged line until noon before reaching an intraday high of 27,841.39 just past noon. The index remained in positive territory for the rest of the session before closing at 27,775.23, up by 16.55 points (or 0.06%).

On July 10, US President Donald Trump announced a 35% tariff on all goods imported into the US from Canada that are not compliant with the Canada-US-Mexico Agreement (CUSMA).

Fortunately, around 85% of Canadian exports fall under the CUSMA and are tariff-free. However, a review of the CUSMA pact is scheduled for 2026 wherein Trump may put up a hard stance.

Responding to this, Canadian PM Mark Carney reassured the nation on building a strong economy and to protect the interests of the business houses and domestic workers.

So far, Canada has not adopted the "retaliatory tariffs" route against the US. High-level talks between the two nations are still going on to end this deadlock.

A new poll from Abacus Data suggests that Carney's popularity might be slightly quieting down but net approval remains positive, indicating that the citizens are supporting the measures he is taking to solve a major economic challenge thrown by its neighbour in the form of a "trade war."

Traders are also focused on the upcoming meeting between Trump and Russian President Vladimir Putin in Alaska on August 15 to negotiate an end to Russia-Ukraine conflict. A peace accord, if signed, could rejuvenate global trade.

With the deadline for reaching a trade deal given to China by the US ending tomorrow, expectations are high about another extension.

Inflation data coming out tomorrow from the US could push the data-driven Fed to cut borrowing rates if the numbers are weaker-than-expected.

Canadian June wholesale trade and manufacturing sales numbers set to come up this Friday are the only major heavy indicators for this week.

Major sectors that gained in today's trading were Healthcare (4.86%), Consumer Discretionary (0.40%), Consumer Staples (0.39%), and Industrials (0.32%).

Among the individual stocks, Bausch Health Companies (16.14%), Linamar Corp (1.48%), Rb Global Inc (3.02%), and Bird Construction (2.65%) were the prominent gainers.

Major sectors that lost in today's trading were Utilities (0.05%), Materials (0.51%), Real Estate (0.71%), and Energy (0.91%).

Among the individual stocks, Capstone Mining Corp (5.46%), Ivanhoe Mining Ltd (3.95%), CDN Apartment Un (2.47%), and Baytex Energy Corp (3.18%) were the notable losers.

Constellation Software Inc (5.14%) and Goeasy Ltd (3.10%) were among the prime market-moving stocks today.