Canada’s main stock index clocked a new record high on Monday, lifted by renewed trade discussions between Washington and Ottawa that lifted investor sentiment. Late Sunday, Canada withdrew its planned digital services tax—set to target major US tech companies—just hours before it was scheduled to take effect. The move was aimed at reviving stalled trade talks with the United States. According to the federal finance ministry, Prime Minister Mark Carney and US President Donald Trump are expected to resume negotiations, with a goal of reaching a deal by July 21. Trump had abruptly halted the talks on Friday, calling the tax a “blatant attack” on American firms.
US markets also rallied, as optimism around trade talks added to a strong month for Wall Street, pushing stocks toward new record highs. Monday’s gains followed Canada’s decision to cancel the digital services tax, which had prompted Trump to announce on Friday that the US was “terminating ALL discussions on Trade with Canada.” The tax, which was set to take effect Monday, would have impacted companies like Alphabet’s Google (NASDAQ:GOOGL), Meta (NASDAQ:META), and Amazon (NASDAQ:AMZN).
The Canadian dollar traded for 73.32 cents US compared to 72.86 cents US on Friday.
US crude futures traded $0.51 lower at US$65.01 a barrel, and the Brent contract lost $0.14 to US$67.63 a barrel.
The price of gold was up US$18.74 to US$3,293.72.
In world markets, the Nikkei was up 336.60 points to ¥40,487.39, the Hang Seng was down 211.87 points to HK$24,072.28, the FTSE was down 37.95 points to ₤8,760.96, and the DAX was down 123.61 points to €23,909.61.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein.