12:16 PM EDT, 08/25/2025 (MT Newswires) -- The Toronto Stock Exchange is down near 156 points with miners, up 0.8%, the sole gainer. The market finished at an all-time high on Friday.

Canada's key release this week is second-quarter real GDP on Friday. BMO Economics in its morning note Monday included a preview, saying the economy likely contracted modestly due to lower exports of steel, aluminum and autos to the U.S. and deferred business investment. Attention will also be on the flash estimate for July GDP, which could signal whether the economy has slipped into a technical recession. For now, BMO expects GDP to stall in the third-quarter, rather than contract, before picking up later this year.

BMO also added Bank of Canada Governor Tiff Mackem speaks on Tuesday. After standing pat for the last three policy meetings, the Bank has kept the door ajar for a September rate cut given the weakening labour market. But BMO said a move will likely require the next CPI report to show some ebbing in core inflation, as the underlying three-month trend seems to be stuck almost half a percentage point above the target. At the margin, last week's announcement by the Federal Government to remove retaliatory tariffs on USMCA-compliant U.S. goods will slightly reduce inflation, thus increasing the odds of a rate cut, it added.

In stocks, Quipt Home Medical ( QIPT ) is 23% higher after one of its largest shareholders, Forager Capital Management, submitted a proposal to acquire Quipt for $3.10 per share in cash. Forager also said it is willing to improve its offer.

The Canadian banks begin reporting second-quarter results from tomorrow, starting with Bank of Nova Scotia (BNS.TO. BNS) and Bank of Montreal (BMO.TO, BMO).