TSX edges higher as tech stocks rally amid U.S.-Canada trade uncertainty
The benchmark S&P/TSX Composite Index rose 0.2% to 27,427.78 points, remaining on track for a modest weekly gain.
Trump said on Friday that the United States may not reach a trade agreement with Canada, hinting his administration could set a tariff rate unilaterally.
'It's just a negotiating tactic by the U.S.', said Michael Constantino, CEO of online investment platform Webull Canada, adding that 'a tariff agreement with Canada is imminent'.
Meanwhile, global equities fell as investors booked profits ahead of a critical week that includes the August 1 tariff deadline.
Sentiment this week was buoyed by U.S. trade agreements with Japan, Indonesia, and the Philippines, while negotiations continue with the European Union and South Korea, raising hopes for additional deals.
Investors also assessed the strength of Canadian corporate earnings in the second quarter.
According to Constantino, there has been a noticeable influx of capital into the market, with growing interest in Canadian AI-focused stocks, which he says are 'taking the market by storm.'
On the TSX, information and technology stocks climbed 1%, boosted by a 2.5% gain in Celestica after Cormark Securities raised its target price for the electronics firm.
However, blockchain farm operator Bitfarms dropped 4.1% as bitcoin prices fell nearly 3%.
Attention is shifting to key events next week, including policy decisions from the Bank of Canada and the U.S. Federal Reserve, as well as earnings reports from several 'Magnificent Seven' tech companies.
A Reuters poll of economists expects the Bank of Canada to hold its overnight interest rate steady at 2.75% on July 30 for the third consecutive meeting.
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