12:17 PM EDT, 06/04/2025 (MT Newswires) -- The Toronto Stock Exchange is down 143 points with energy and utilities, down 2.3% and 0.9%, respectively.

Miners, up 0.8%, and healthcare, up 0.05%, are the sole giainers.

The Bank of Canada as expected left its key benchmark interest rate unchanged, but fresh trade war tensions with the U.S. are weighing on sentiment. This comes after the index closed Tuesday at a second-straight record high.

U.S. President Trump yesterday signed an executive order to double steel and aluminum tariffs to 50%, a move that is likely to hurt the Canadian economy. BMO Economics notes that today is the supposed deadline for countries to submit to the U.S. their "best offer" for a trade deal.

On the home front, the BoC kept its key benchmark interest rate at 2.75%, despite concerns around the outlook for the Canadian steel and aluminum, and auto, industries given U.S. tariffs.

According to CIBC, the widely expected stand-pat decision on rates "didn't put a nail in the coffin for a further easing" by the BoC, with its announcement still noting risks to growth ahead. The opening statement to the press conference noted that members of its Governing Council were aligned on a decision to pause today, but while divided, "on balance" they seemed to expect that a further easing could prove necessary. In line with its recent messaging, CIBC noted, the BoC continues to await greater clarity on various policy fronts, and weigh risks of tariff-driven inflation against the downward inflation pressure of economic slack.

The BoC statement noted the mixed picture for growth in Q1 and an expectation that Q2 will be considerably weaker, and also the upward move in some core inflation measures. with the BoC statement sayinf it judged that underlying inflation might be firmer than thought. CIBC believes July looks more promising for a quarter point ease if, as it expects, the jobless rate continues to move higher, and inflation in items not subject to tariff pressures eases slightly. "Today's non-move was well anticipated by markets, and most investors will want to see Friday's jobs data before changing their views on the direction of the policy rate," said CIBC's Avery Shenfeld.

In other domestic economic news, National Bank noted GTA home sales improved in May, but remained historically low.

According to the Toronto Regional Real Estate Board (TRREB), seasonally adjusted home sales increased by 8.4% from April to May, the second monthly improvement in a row. Despite this advance, National Bank noted, sales remain very low on a historical basis and 29% below their most recent peak in November 2024. National Bank said: "There is no doubt that, as elsewhere in the country, the trade situation with the United States continues to weigh on the real estate market, and in this still volatile geopolitical context, it is too early to say that the slight pickup in sales in recent months is the beginning of a sustainable recovery for the Toronto residential market. In addition, the sharp deterioration of the labour market in the region, which is particularly acute among young people, and which is likely to worsen in the current economic climate, will limit the extent of any potential recovery in the housing market."