TSX Futures Dip as U.S. House Approves Trump’s Tax Bill
()- Futures for Canada’s leading stock index declined slightly on Thursday following the narrow passage of President Donald Trump’s “large, impressive” tax legislation by the U.S. House of Representatives.
June futures for the S&P/TSX index fell by 0.09% at 7:16 a.m. ET (1116 GMT).
The GOP-led U.S. House barely approved an extensive tax and expenditure measure that would implement many of Trump’s policy goals. However, this has caused concern among investors who fear it could contribute approximately $3.8 trillion to the national debt, which is currently at $36.2 trillion over the coming ten years.
Previously, U.S. long-term bond yields stabilized close to their peak in 18 months, following weak demand for a 20-year bond auction, which added more concerns to the market regarding an increasingly grim fiscal situation in the largest global economy.
On Wednesday, Canada’s Finance Minister François-Philippe Champagne mentioned that he had a productive discussion with U.S. Treasury Secretary Scott Bessent, and both expressed satisfaction regarding their advancements. This comes after President Trump and Prime Minister Mark Carney agreed at the beginning of the month to start substantial negotiations for establishing a fresh partnership.
In the commodity market, oil prices dropped by 1%, and copper prices in London also saw a slight decrease.
Gold prices continued their upward trend for the fourth consecutive session.
Corporate updates highlighted TD Bank experiencing a decline in their second-quarter profits. This was due to the bank setting aside additional funds to prepare for possible future loan defaults amid an unstable economic climate.
Canada’s primary stock benchmark retreated from an all-time peak on Wednesday due to rising long-term interest rates and as investors assessed their positions following recent market increases.
FOR CANADIAN MARKET UPDATES, SELECT THE RELEVANT CODES BELOW:
TSX market report [.TO]
Report on Canadian dollars and bonds [CAD/] [CA/]
Global stock poll for Canada
Canadian markets directory
(Sanchayaita Roy reported from Bengaluru; Edited by Sahal Muhammed)