TSX Concedes Record Milestone
The S&P/TSX Composite Index declined by 0.8% to settle at 25,839 on Wednesday, pulling back from its previous record highs. This downturn can be attributed to uncertainties regarding US trade and fiscal policies, coupled with mixed domestic economic indicators, which have dampened investor confidence. The ongoing impasse in Congress over President Trump's tax initiatives, along with stalled discussions in crucial trade negotiations, have particularly impacted industries reliant on exports. Domestically, a 0.4% drop in April's new housing price index has ended a two-month period of stability, raising fresh concerns about Canada's potentially overheated real-estate market. Concurrently, Canada's major banks have collectively allocated over C$1 billion for second-quarter loan-loss provisions as household leverage continues to rise. On the policy front, core inflation has climbed to 2.9%, decreasing the likelihood of a rate cut in June to approximately 35%. In terms of market performance, leading tech and financial companies have faced significant declines: Shopify fell by 4.2%, Brookfield decreased by 3.8%, Constellation Software dropped by 3.4%, and Manulife Financial declined by 3.6%.
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