Canada's main stock index gave up some ground at first Wednesday as investors assessed weaker-than-expected U.S. private jobs data, while tracking signs of any progress on U.S. trade talks as the July tariff deadline nears.
The TSX Composite Index descended 64.36 to begin Wednesday at 26,792.75.
The Canadian dollar was flat at 73.30 cents U.S.
White House economic adviser Kevin Hassett said on Monday that the U.S. will resume trade negotiations with Canada immediately. The move follows Ottawa scrapping its digital services tax targeting U.S. technology firms.
Canada sends about 75% of its exports to the U.S., including autos, steel and aluminum, which have been hit by hefty U.S. duties.
In the U.S., Senate Republicans passed Trump's massive tax-and-spending bill on Tuesday by the narrowest of margins. The legislation now heads to the House of Representatives for possible final approval.
Markets in Canada were closed Monday for Canada Day.
ON BAYSTREET
The TSX Venture Exchange acquired 11.88 points, or 1.6%, to 745.25
Eight of the 12 TSX subgroups were ahead in the first hour, led by telecoms, up 1.6%, while consumer discretionary and health-care stocks each improved 0.8%.
The four laggards were weighed most by information technology, sliding 1.5%, while consumer staples sagged 1.2%, and financials ditched 0.6%.
ON WALLSTREET
The S&P 500 was relatively unchanged on Wednesday after a new report showed private payrolls surprisingly decreased in June, raising concern over the state of the U.S. economy.
The Dow Jones Industrials withered 101.49 points to 44,393.45
The much broader index eked up 2.72 points to 6,200.73
The NASDAQ Composite added 69.38 points to 20,272.27.
The private sector lost 33,000 jobs last month, according to the latest report by ADP. That marks the first monthly decline in ADP’s payrolls report since March 2023. Economists polled by Dow Jones expected payrolls to grow by 100,000.
The report comes with the stock market near record highs despite concerns that lingering trade tensions between the U.S. and other countries could slow U.S. and global economic growth.
To be sure, the ADP report has a lackluster record predicting the government’s monthly jobs report, which is due out Thursday. Economists expect growth of 110,000 jobs for June.
Jefferies upgraded Ross Stores to buy from hold Tuesday, citing the stock’s wide valuation gap to its peers and the opportunity for margin improvement. The firm also raised its price target to $150 from $135, implying more than 15% upside from Monday’s close.
Ross shares gained $1.22 to $131.19.
Prices for the 10-year treasury were lower, raising yields to 4.29% from Tuesday’s 4.25%. Treasury prices and yields move in opposite directions.
Oil prices took on 31 cents to $65.76 U.S. a barrel.
Gold prices ditched $3.60 to $3,346.20 U.S. an ounce.
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