TSX Hits Record High on Trade Optimism, Inflation Easing

Canada's S&P/TSX Composite Index recently reached record highs, driven by gains in industrial, financial, and telecommunication sectors amid easing global trade tensions and softer U.S. inflation data. The 90-day pause in the U.S.-China tariff dispute and a new U.S.-UK trade agreement have improved investor sentiment, reducing recession fears and boosting risk appetite. Economic reports from the U.S., including declining retail sales growth and a drop in wholesale prices, have fueled expectations for potential Federal Reserve interest rate cuts later this year, further supporting stock prices. Despite some sector-specific declines, such as a drop in gold prices, the overall market trend is positive, with the index on track for its sixth consecutive week of gains. Investors are also watching upcoming Federal Reserve comments closely, as these could influence market momentum. Corporate activity, including a significant takeover bid by Canadian oil and gas producer Strathcona, reflects strategic repositioning amid these favorable trade and economic conditions.