Canada’s main stock index pulled back from its record high on Wednesday, as investors remained cautious amid ongoing trade discussions and debates surrounding a major US tax reform bill. Market participants are also closely watching the Group of Seven finance ministers’ meetings taking place in Canada, looking for any signs that a weaker US dollar might support progress in trade talks.
Meanwhile, in the United States, Republican lawmakers are working to finalize a budget proposal aimed at reducing taxes. However, the plan is encountering resistance from GOP members who are pushing for greater deductions on state and local taxes. Investors are also concerned that the proposed legislation could lead to a larger federal deficit.
The Canadian dollar traded for 72.13 cents US compared to 71.89 cents US on Tuesday.
US crude futures traded $0.62 lower at US$61.41 a barrel, and the Brent contract lost $0.65 to US$64.73 a barrel.
The price of gold was up US$41.17 to US$3,323.78.
In world markets, the Nikkei was down 230.51 points to ¥37,298.98, the Hang Seng was up 146.30 points to HK$23,827.78, the FTSE was up 5.34 points to ₤8,786.46, and the DAX was up 86.29 points to €24,122.40.
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