TSX retreats from record high, investors assess US and EU trade deal
The Toronto Stock Exchange's S&P/TSX composite index was down 0.5% at 27,356.44 points.
The U.S. struck a framework trade agreement with the EU on Sunday, imposing a 15% tariff on most EU goods and requiring the bloc to invest around $600 billion in the U.S.
Other countries are also looking to finalize trade deals before the August 1 tariff deadline. But U.S. President Donald Trump said on Friday the country may not reach a trade agreement with Canada.
'For whatever reason, the U.S. does not feel Canada is important enough to get a deal done, at least with any urgency… and that obviously is a big problem,' said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.
But in general, investors are focused on artificial intelligence, chips, semiconductors and U.S.-China relations at the moment, Small said, adding that if those negotiations go well, 'it is possible that the market could withstand the non-negotiations between Canada and the U.S.'
Top U.S. and Chinese economic officials met in Stockholm on Monday to resume talks to resolve longstanding economic disputes at the centre of a trade war between the world's top two economies, aiming to extend a truce by three months.
On TSX, mining stocks fell 2.4%, tracking lower gold prices.
New Gold slipped the most, down 6.6%, after the company reported second-quarter results.
The energy subindex gained 1.2%, tracking higher oil prices.
Company-wise, First National Financial said it had agreed to be acquired by private-equity firm Birch Hill Equity Partners and asset manager Brookfield Asset Management in a C$2.9 billion ($2.12 billion) deal. Its shares jumped 13.1%.
This week, investors will monitor policy decisions from the U.S. Federal Reserve and the Bank of Canada, and earnings from some 'Magnificent Seven' companies.
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