12:12 PM EDT, 06/27/2025 (MT Newswires) -- The Toronto Stock Exchange is up 36 points with healthcare (+1.9%) and technology (+1%) the biggest gainers.

Limiting gains are declines in miners (-0.8%) and energy (-0.2%).

The focus here in Canada was on Monthly GDP for April and an advance reading for May. Canadian GDP fell by 0.1% month-on-month in April, underperforming Statistics Canada's advanced guidance for an uptick in growth. GDP growth in May is expected to pull back by another 0.1% m/m per the updated flash estimate.

In looking at the key implications, TD said "the downside risks to Canada's economic growth are beginning to manifest", especially in tariff-exposed sectors. It said April's underperformance combined with downbeat expectations for May leave second quarter growth tracking a mild contraction, setting up a sharp pullback from Q1 readings. Past this, the outlook through the belly of the year faces clear downside risk as the direct impact from tariffs add to the headwinds from plunging business and consumer sentiment, it added.

TD said the Bank of Canada will "take this reading in stride", weighing softer economic growth against ongoing underlying inflation pressures. At their June meeting, TD noted, the BoC decided to hold the policy rate steady at 2.75%, as they "proceed carefully" around risks and uncertainties. TD added: "We think that the outlooks for growth and inflation have since moved the BoC a bit closer to delivering a 25 bps interest cut in July, but a bit more evidence will be needed for a decisive move. With Canada's labour market showing cracks, consumers reigning in spending, and the housing market visibly strained, we think the BoC has headroom to cut the policy rate two more times this year."

RBC Global Financials Research Group, in its weekly valuation overview, noted that the TSX Bank Index was up +0.9% in the past week and up 7.2% year to date.

The TSX Life and Health Insurance Index was up 2.2% in the past week and up 4.1% year-to-date, RBC added.