TSX Settles Lower As Trade Tensions Resurface

(RTTNews) - Despite hitting record highs earlier in the week, the Canadian market ended weak for a second straight day as trade tensions weighed on sentiment, prompting investors to tread cautiously on Friday.

Investors also digested the Canadian GDP data, as well as a slew of data from the U.S., including a reading on inflation and consumer sentiment.

The benchmark Canadian stock market index TSX Composite today opened lower, and despite dropping further post noon, managed to regain some lost ground and eventually settled with a modest loss of 35.51 points or 0.14% at 26,175.05. The index gained 0.6% in the week.

On Thursday, a U.S. federal appeals court temporarily reinstated Trump's tariffs, a day after a trade court ruled he had exceeded his authority, to consider the government's appeal.

Trade war concerns have resurfaced after U.S. President Donald Trump accused China of violating the trade agreement reached earlier this month.

Trump said in a post on Truth Social that "everything quickly stabilized and China got back to business as usual" following the trade deal. "Everybody was happy! That is the good news!!!" Trump said. "The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!"

Earlier, U.S. Treasury Secretary Bessent said in a Fox News interview on Thursday that U.S.-China trade talks "are a bit stalled."

In Canadian economic news, data from Statistics Canada showed the Canadian GDP expanded by 0.5% from the previous quarter in the first three months of 2025, maintaining the revised 0.5% growth rate from the earlier period.

The Canadian economy likely expanded 0.1% in April 2025, the same as in March, preliminary estimates showed.

Communications stocks were among the prominent gainers in the session. Cogeco Communications gained about 1.4%.

Industrials, consumer staples and financials stocks too found some support.

Energy and healthcare stocks dropped with the respective indices losing 1.76% and 1.75%. Real estate, materials, technology and industrials turned in a mixed performance.

Baytex Energy (down 4.3%), Cenovus Energy (down 3.4%), Freehold Royalties (down 3.14%) and Meg Energy Corp (down 2.8%) were the major losers in the energy sector.