TSX slips after six-day win streak as investors await trade developments
The Toronto Stock Exchange's S&P/TSX composite index was down 0.13% at 25,583.02 points after rising 2.6% in the past six sessions and hitting a three-month high last week.
Markets have been rising on trade optimism after a limited U.S.-UK agreement and the United States and China pausing their fierce tariff dispute assuaged fears about a global economic slowdown.
A 90-day tariff pause announced by the U.S. on April 9 for countries other than China, along with solid earnings reports and a cooler-than-expected U.S. inflation reading, helped the index regain ground from early April lows.
'I think all the markets are taking a little bit of a breather now after the recent rallies', said Michael Sprung, president at Sprung Investment Management.
'The inflation reading and the U.S.-China situation buoyed the market in the immediate past but … expectations of what is likely to happen are becoming more and more uncertain. And so I think the markets going to be looking for some direction'.
TSX gains on US-China tariff agreement
Federal Reserve Vice Chair Philip Jefferson noted that recent inflation data indicate progress toward the Fed's 2% target, yet the outlook remains uncertain as potential new import taxes could elevate prices.
On TSX, mining stock fell 1.9%, tracking lower gold prices, as easing U.S.-China tensions dimmed bullion's safe-haven appeal.
Energy subindex slipped 0.6% after oil prices fell as traders eyed a potential jump in U.S. crude inventories, while OPEC lowered its oil supply growth forecast for producers outside OPEC+.
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Express Tribune
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EU's extensive wishlist for China
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The country's capital inflows in electrical vehicle and battery manufacturing and the China-EU energy cooperation could enhance EU's production capacity and ensure its energy security, bringing economic prosperity and accelerating green development. After all, it was China whose imports and capital influx assisted to prop up Europe's creaking economies during the European sovereign debt crisis. Although it was seen as a strategic move to help itself, China's support at a critical time bolstered European ability to navigate one of the nastiest economic challenges. The EU has been accusing China of flooding the global markets with subsidised overcapacity. Beijing's competitive advantages including affordable labour costs, efficient supply chains and large economies of scale, producing more goods at significantly lower prices, are some of the major drivers behind its export boom. 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While these raw materials are critical in producing a gamut of gadgets like smartphones, laptops and electric vehicles, they can be used to develop missiles, fighter jets and drones. Beijing may argue that its curbs are in line with EU's own practices to prevent the misuse of these dual-use items and contribute to global peace and non-proliferation efforts. As per the Eurostat, Brussels imported 12,900 tons of REEs in 2024 — 46.3% from China, 28.4% from Russia and 19.9% from Malaysia — while exporting 5,500 tons to other countries. The data contests the EC claim that EU relies on China for 98% of its REEs supply and weakens its position against Beijing vis-à-vis latter's trade with Moscow. 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The EU needs to close these loopholes in its foreign policy to engage China on better footing.
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Business Recorder
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