04:14 PM EDT, 09/23/2025 (MT Newswires) -- After running up to an record intraday high above the 30,000 mark for the first time early Tuesday, the Toronto Stock Exchange then succumbed to profit taking over the remainder of the session as market watchers awaited and then digested a mid-afternoon speech from Bank of Canada Governor, Tiff Macklem.

Despite higher commodity prices, the resources-heavy S&P/TSX Composite Index closed down 143.35 points, or 0.5%, to 29,815.63, even with most sectors higher. The Battery Metals Index was up 3.9% and Energy up 1%. Among the biggest losers, Info Tech was down 2.9% and Industrials down 1.5%.

On the domestic economics front, there has not yet been much of a reaction to Macklem, who delivered a speech mid-afternoon Eastern Time on global trade disruption to Saskatchewan business leaders. Of note, Macklem said trade growth in Canada had slowed well before the re-election of President Trump in the United States, adding trade as a share of Canadian GDP stopped increasing in about 2000. But, Macklem said, Canadian exports have declined sharply since Trump imposed new tariffs on Canada and "created considerable uncertainty" with tariff threats and reversals.

In the longer term, Macklem said, increased trade friction with the United States means Canada's economy will work "less efficiently, with added costs and less income". He added: "We need to diversify our trade by growing our internal market and finding new overseas markets. And we need to improve our productivity and make ourselves more attractive to investors. That work has started, and I've spoken about all these things before."

Just ahead of the close of equity trading, Desjardins Macro Strategist Tiago Figueiredo offered a quick take on the speech. In his prepared remarks, Figueiredo noted, Macklem indicated that the trade war with the United States has pushed Canada onto a permanently lower path for economic activity. "He [Macklem] then noted that monetary and even counter-cyclical fiscal stimulus are not long-term solutions to the problems at hand. Structural reforms that help improve Canada's productivity and competitiveness by diversifying away from the US are changes that could improve long-term domestic growth prospects. The Governor noted that some of these require little fiscal cost and could be implemented quickly. He suggested reducing inter-provincial barriers, mutually recognizing labour accreditation for certain professions, and reducing regulatory approvals and uncertainty."

"However," Figueiredo said, "Macklem noted that monetary policy can support the economy through this period of adjustment. Economic activity has deteriorated, in part as a result of the trade war with the US, but concerns around inflation had held the central bank back from easing until recently. Going forward, Macklem said that his central bank remains prepared to react to new information and support economic growth while ensuring that inflation remains well controlled. That's broadly in line with last week's communications, which saw the Bank refraining from providing specific forward guidance. That said, it could also be argued that Macklem did not feel the need to push back against market expectations for more easing. As a result, we remain comfortable holding the view that Canadian central bankers will lower their policy rate to a trough of 2.00%."

Of commodities, gold futures continued their record run, rising above the US$3,800 mark for the first time as lower interest rates and safe-haven buying support the precious metal. Gold for December delivery was up $38.50 to US$3,813.60 per ounce.

Also, West Texas Intermediate oil closed higher, rebounding from four losing sessions as Chinese demand continues to offset rising supply. WTI crude oil for November delivery closed up $1.13 to settle at US$63.41 per barrel, while November Brent oil was last seen up $0.90 to US$67.47.