12:20 PM EDT, 06/09/2025 (MT Newswires) -- The Toronto Stock Exchange is down 10 points with Info Tech (-0.8%), the biggest decliner, while the mining sector, up 1.6%, is the biggest gainer.

Market focus is on U.S.-China trade talks, which continue in London this week.

BMO Economics said the TSX added 1.0% last week on strength in materials, energy and technology, to finish at another record closing high. Yields were modestly higher along the curve, with the 10-year up 14 bps and the 2-year rising 11 bps with the Bank of Canada on hold, and as the economic data (including the May employment report) are "still holding up relatively well". The loonie was modestly firmer on the week, and starts the day at $1.367/USD (73.1 US cents).

There were, according to BMO, no surprises in the BoC's decision to leave rates on hold last week. BMO said if inflation slows over the next couple of prints and the economy slows as widely expected (BMO has "much higher conviction on the latter than former"), the door is still wide open for the BoC to cut rates in July. BMO noted market pricing isn't there -- there are about 7 bps of easing priced in for that meeting, and not quite a full 25 bps by October -- but it also noted "that's a long time from now" in the context of an economy grappling with a trade war.

Meanwhile, Prime Minister Mark Carney today announced a major bump in defence spending to hit NATO's 2% of GDP target by the end of this year, five years ahead of schedule. This comes before a NATO summit on June 24-25th when Secretary-General Mark Rutte has said he expects members to raise military spending to 3.5% of GDP plus 1.5% on related security measures for a total of 5%.

According to NATO figures released last year, Canada's defence spending stood at 1.37% of GDP, while 23 of the alliance's 32 members were spending more than 2%, the Toronto Star noted.