TSX pulls back from record high as gold hits a three-week low
The S&P/TSX composite index (.GSPTSE), opens new tab ended down 88.93 points, or 0.3%, at 27,405.42, after posting a record closing high on Friday.
The , announced on Sunday between two economies accounting for almost a third of global trade, will see the U.S. impose a 15% import tariff on most EU goods from next month, but offers some protection for critical industries like cars and pharmaceuticals.
"The market was expecting this news for a long time and as such we're not seeing the market rally on the trade deal," said Colin Cieszynski, chief market strategist at SIA Wealth Management.
"We had a massive rally in the markets, they're kind of tired and people are taking profit on the news."
Canada is also a major trading partner with the United States. Talks between Canada and the United States on a trade deal are at an intense phase, Prime Minister Mark Carney told reporters, reiterating that an agreement without any tariffs at all was unlikely.
The materials group, which includes fertilizer companies and metal mining shares, lost 1.5%. Gold fell to a near three-week low as the U.S.-EU trade accord lifted the U.S. dollar, while investors awaited fresh cues on interest rate policy from this week's Federal Reserve meeting.
The Fed and the Bank of Canada are both due to make a policy decision on Wednesday.
Real estate declined 1.2% and industrials ended 0.7% lower.
Gains for energy helped limit the Toronto market's decline, with the sector adding 1.9% as the price of oil rose. U.S. crude futures settled up 2.3% at $70.04 a barrel after U.S. President Donald Trump said he would shorten the deadline for Russia to end its war in Ukraine.
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