Market volatility stemmed from the Trump administration's expansion of tariff measures – announcing plans to impose new tariffs on goods from 14 countries including Japan and South Korea starting August 1, though leaving room for negotiations. Brandon Michael, an analyst at ABC Funds, noted: "The TSX is in a consolidation phase, and the technical outlook remains resilient after the recent strong rally."
In individual stock movements, logistics firm Mullen Group (MTL.TO) dropped 1.1% following a downgrade by CIBC, while Bombardier (BBDb.TO) rose 1.5% after the same institution raised its target price.
Economic fundamentals sent mixed signals: Short-term positives included the June Ivey PMI rising to 53.3, a four-month high, indicating accelerating economic activity expansion; on the policy tightening front, the Finance Minister demanded systemic spending cuts across ministries (increasing annually to 15% starting from 2026), with funds to be reallocated to priority areas.
Analysts warned that external tariff risks and internal fiscal austerity could dampen the upward momentum of resource-heavy stocks, and the sustainability of energy sector gains will depend on commodity price trends and details of the autumn budget.
