TSX Slips as Investors Weigh Canadian GDP and U.S. Inflation Data

The S&P/TSX Composite Index experienced a mixed session on Friday, ending slightly lower as investors balanced domestic growth figures against critical inflation data from the United States. The benchmark index declined by 19.51 points, or 0.09%, to settle at 21,922.65, after having touched an intraday high of 22,050.29. Market participants are currently navigating a complex landscape of slowing inflation and modest economic growth. While U.S. price data suggests a cooling trend that could pave the way for Federal Reserve easing, domestic business sentiment in Canada shows signs of slight deterioration, as evidenced by the CFIB business barometer dipping to 56.3 in June. Statistics Canada reported that the Canadian economy expanded by 0.3% in April, while preliminary estimates for May suggest a slower growth rate of 0.1%. Simultaneously, the U.S. Commerce Department revealed that the May PCE price index remained unchanged, with the core PCE rising by a modest 0.1%, matching economist expectations. Annual growth for both the headline and core PCE slowed to 2.6%. Equity performance was fragmented across sectors. Kinaxis Inc saw gains of approximately 3.5%, while other firms including Bombardier and Restaurant Brands International rose between 1.3% and 2.4%. Conversely, pressure was felt in the energy and financial sectors, with TC Energy and CIBC both declining between 1.4% and 2%, while Tecsys and Brookfield Renewable saw steeper drops of up to 4.6%.