20.01.202615:00:13UTC+00TSX Pulls Back from Record High

The S&P/TSX Composite Index experienced a decline of approximately 0.6% on Tuesday, descending to below the 32,920 mark. This downturn follows a previous record close of 33,090. The downturn in Canadian equities mirrors a broader global retreat, prompted by concerns over diminishing trade between the US and key trading partners, and mounting pressures in sovereign bond markets, which negatively impacted investor confidence. The banking sector, a significant weight on the index, led the decline, reflecting losses seen across North America, as policy uncertainty increased amid rising tensions between the US and the EU regarding Greenland. The technology sector also weighed on the index, with major player Shopify falling over 2.5%, despite its relatively smaller impact on the overall index. Performance among resource-linked stocks was varied; although higher natural gas prices, influenced by colder weather forecasts, supported gains, the inconsistency in other commodities' movements, along with geopolitical tensions amongst NATO members, continued to push bullion prices to record highs.