04:15 PM EDT, 07/17/2025 (MT Newswires) -- The Toronto Stock Exchange moved higher Thursday afternoon, closing at a fresh record even as trade-war woes continue after U.S. President Donald Trump said he aims to put tariffs of 10% or 15% on over 150 countries.

The S&P/TSX Composite Index closed up 233.37 points at 27,386.34, topping the previous high, set Monday, of 27,198.85. Most sectors were up, with Information Technology and Financials the biggest gainers, rising 7.6% and 5.9%, respectively, while Telecoms was the biggest decliner on the day, down 0.7%.

Scotiabank economists, including Jean-Francois Perrault, said recent data and fiscal announcements in both Canada and the United States suggest slightly stronger economic growth than previously expected, although both economies are still projected to expand below their potential due to trade uncertainty.

They added that inflation pressures are likely to prevent central banks from cutting rates, so Scotiabank is maintaining its view that both the Bank of Canada and the Federal Reserve will hold off on rate changes for the rest of the year.

"Our forecast does not reflect recent trade pronouncements in the U.S. We will wait until policies actually take effect before reflecting those in our forecasts. There is simply too much uncertainty about the way forward on trade to build those into our forecasts at the moment," the economists said.

In Canada, growth appears more resilient than anticipated. Job creation was strong in June and existing home sales have been rising, suggesting some recovery in the housing market. "This is not to say the economy is strong, it remains weak across a broad range of indicators, but on balance, the economy is less weak than we had earlier assumed," they said.

Trade talks remain a key factor in the outlook, but the latest threat to raise tariffs on non-CUSMA exports to the United States from 25% to 35% would likely have only a limited overall impact on the Canadian economy if implemented, they added.

In the US, while trade-related risks remain unresolved, fiscal policy from the recent "One Big Beautiful" budgetary law offers some stimulus. However, this poses challenges for inflation management and fiscal sustainability. Political tensions around Federal Reserve Chair Powell add to financial market uncertainty.

"For the moment, the US economy is weakening less rapidly, and equity markets have been stronger than expected, as is the case in Canada. We have revised up our forecasts for growth modestly this year and next, with growth of around 1.5 per cent this year and next now expected. The outlook continues to reflect the negative impacts of tariffs and policy uncertainty, which, as noted above, could lead to downward revisions to growth once there is more clarity about the policy environment," the economists said.

West Texas Intermediate (WTI) crude oil rose on Thursday, pushed up by tightening supply and safe-haven buying on renewed Middle East violence. WTI oil for August delivery closed up US$1.16 to settle at US$67.54 per barrel, while September Brent oil was last seen up $0.80 to US$69.32.

Gold traded lower on Thursday as the dollar moved up after U.S. retail sales rose above expectations last month. Gold for August delivery was last seen down US$16.30 to US$3.342.80 per ounce.