04:16 PM EDT, 07/07/2025 (MT Newswires) -- The Toronto Stock Exchange fell again on Monday, edging down again from Friday's record high, as confusion over U.S. tariff policies continues.

The S&P/TSX Composite Index closed down 15.88 points at 27,020.28, compared with Friday's record close of 27,036.16. Most sectors were in the red, except Telecoms, which was up 0.7%. Decliners were led by Base Metals and Energy, which dropped 2.7% and 1.8%, respectively.

Derek Holt, Head of Capital Markets Economics at Scotiabank Economics, said the United States is once again delaying its tariff threats. Treasury official Bessent said yesterday that if no trade deals are made by Aug. 1, tariffs will return to the high levels seen on April 2, extending the original deadline set for this Wednesday.

Trump plans to speak more about tariffs today. However, the new deadline likely isn't a serious threat, given the administration's history of similar delays and the major economic damage those high tariffs would cause, Holt added.

"The rest of the world understands the US political cycle better than the US administration and it's Trump that is under pressure into midterms more than the other countries. Any 'deals' with the US administration are likely to be token ones as major trading partners resist longer-term damage emanating from deeply misguided US economic policies," he said in the note.

Holt said the US dollar is trading stronger against most major currencies. Government bond yields are mostly unchanged, with European bonds underperforming slightly compared to U.S. Treasuries. In the United States, long-term bonds are lagging after the administration passed its "One Big Beautiful Bill," which analysts estimate will increase the primary deficit by $3.2 trillion over the next decade "in highly regressive fashion that will negatively impact much of Trump's base".

BofA Securities analysts said there is growing optimism that Prime Minister Mark Carney could help revitalize Canada's flagging economy and secure a trade deal with the United States by the July 21 deadline, a move that could boost Canadian bank stocks. Recent steps like fast-tracking infrastructure projects and removing some interprovincial trade barriers also support that outlook.

After cuts to GDP forecasts due to tariff concerns earlier this year, BofA is now raising its 2025 growth forecast from 1% to 1.4%, citing a more resilient Canadian economy than previously expected. Risks are seen as balanced, though a prolonged trade war with the U.S. remains the biggest downside, while further Bank of Canada rate cuts or more government spending could boost growth beyond expectations.

West Texas Intermediate (WTI) crude oil on closed with a gain on Monday even after OPEC+ over the weekend surprised the market by deciding to further speed the return of voluntary production cuts with an even-larger tranche of supply additions in August as the group looks to regain market share from producers outside of the cartel. WTI crude oil for August delivery closed US$0.93 to settle at US$67.93 per barrel, rising off an overnight low US$65.40. September Brent oil was last seen up US$1.32 to US$69.62.

Gold was steady mid-afternoon on Monday as the dollar rose despite confusion over the timing of threatened U.S. tariffs. Gold for August delivery was last seen up US$3.50 to US$3.346.40 per ounce.