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CANADA STOCKS-TSX retreats from record peak as investors look for progress in trade negotiations
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CANADA STOCKS-TSX retreats from record peak as investors look for progress in trade negotiations
Jun 3, 2025 7:56 AM

(Updates with morning prices)

By Sanchayaita Roy

June 3 (Reuters) - Canada's main stock index slipped on

Tuesday, led by losses in metal miners' shares, as investors

awaited clarity on U.S. tariff negotiations amid ongoing

economic uncertainty.

The Toronto Stock Exchange's S&P/TSX composite index

was down 0.2% at 26,338.04 points. The index notched a

record high in the previous session.

On Monday, the White House said that U.S. President Donald

Trump and Chinese leader Xi Jinping will probably speak this

week to iron out trade issues.

Investors will closely monitor the call between the two

leaders, as ongoing tariff-induced trade tensions between the

world's two largest economies have caused significant volatility

in global equities and businesses.

"The temporary easing of tariffs between the U.S. and China

has offered some relief, but Canadian investors remain

cautious...watching for signs of meaningful progress before

repositioning portfolios", said Shiraz Ahmed, senior portfolio

manager and founder of Sartorial Wealth, Raymond James.

Additionally, the Trump administration wants countries to

provide their best offer on trade negotiations by Wednesday.

However, concerns prevailed over the implementation of

Trump's tariffs after they ran into legal hurdles last week,

with the administration asking an appeals court to pause a

second court ruling.

The Paris-based Organisation for Economic Cooperation and

Development (OECD) trimmed its global growth outlook and said

the trade war was taking a bigger toll on the U.S. economy than

before.

"Slower U.S. growth poses spillover risks for Canada, making

it even more important for investors here to stay globally

diversified", Shiraz added.

Focus will be on the Bank of Canada's interest rate due on

Wednesday.

On TSX, the materials group fell 1.2%, as gold

pulled back after nearing a four-week high earlier in the

session, while the healthcare sector fell 0.9%.

Conversely, energy subindex rose 0.5% as oil

prices edged up.

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