S&P/TSX rises above 36,500 as Trump pauses 50% tariffs on Canadian goods

The S&P/TSX Composite Index rose nearly 1% to trade above 36,500 after US President Donald Trump paused new 50% tariffs on Canadian goods that had been due to take effect Wednesday. Trump said late Tuesday that the three-day pause followed an agreement between the two countries, supporting Canadian exporters including Magna International, which gained 1%, and Nutrien, up nearly 2%. Oil prices reached a three-week high amid uncertainty over shipping through the Strait of Hormuz and continuing supply disruptions, lifting Suncor and Tourmaline Oil by about 1% each. A weaker dollar and stable global bond yields supported gold prices and mining stocks, with Agnico Eagle jumping 7% and Barrick and WPM gaining about 6% each. Financial shares remained under pressure from energy-driven inflation concerns linked to the Middle East conflict and ahead of the US Federal Reserve's July meeting minutes. The move followed earlier weakness in Canadian stocks caused by hotter-than-expected inflation, higher bond yields, firmer oil prices and trade uncertainty.

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