TSX gains after Canada rescinds digital services tax

Published 30/06/2025, 12:00
Updated 30/06/2025, 21:10
© Reuters

Investing.com - Canada’s main stock exchange settled higher ahead of a holiday-shortened week on Monday, as investors welcomed a decision by Canada to scrap a digital services tax aimed at American technology groups as a move to restart trade negotiations with the U.S.

The S&P/TSX Composite composite index gained 0.62% at 26,857.11. It had retreated from an all-time peak on Friday after U.S. President Donald Trump abruptly terminated trade talks with Canada over the digital services tax. 

At  04.05 ET, the S&P/TSX 60 index standard futures had edged up by 8.76 points, or 0.55%.

In a statement on Monday, Canada’s finance ministry said upcoming collection of the tax will be halted. Canada’s finance minister also noted legislation to erase the tax will be brought forward.

Following the announcement, Prime Minister Mark Carney and Trump will now hold talks with the goal of reaching a trade deal by July 21, Canada’s finance ministry said.

U.S. stocks higher

U.S. stocks rose Monday, ending a strong month on a positive note on further trade optimism, while Trump’s tax cut and spending bill advanced in the Senate.

By closing, the Dow Jones Industrial Average gained 275 points, or 0.63%, to 44,094.77, the S&P 500 was up 31 points, or 0.51%, to 6,204.35 and the NASDAQ Composite inched up 96.29 points, or 0.48%, to 20,369.73.

The main averages all ended in the green on Friday, with the benchmark S&P 500 and tech-heavy NASDAQ Composite both notching all-time closing peaks. The Nasdaq, in particular, confirmed its entry into bull market territory, commonly defined as a 20% rise off a recent low.

This month, the S&P 500 is up 4.4%, while the tech-heavy Nasdaq has jumped nearly 6.1%. The Dow, meanwhile, has added about 3.7% month to date.

Oil wavers, but on pace for monthly gain

Crude prices wavered after a cooling of geopolitical risks in the Middle East and the prospect of another OPEC+ output hike in August weighed heavily last week.

At 12:05 ET, Brent futures inched down 0.11% to $66.69 a barrel and U.S. West Texas Intermediate crude futures fell 0.75% to $65.03 a barrel.

Both benchmarks posted their biggest weekly decline since March 2023 last week, but they are set to finish higher in June with a second consecutive monthly gain of more than 5%.

The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, is set to meet on July 6 and is widely expected to agree to another monthly increase in output levels, the fifth since the group started unwinding production cuts in April.

Gold ticks up

Gold prices inched higher from a one-month low, supported by a weaker dollar, though safe-haven demand stayed muted amid easing Middle East tensions and optimism over potential U.S. trade deals.

At 12.05 ET, spot gold rose 0.6% to $3,294.40 an ounce, and gold futures for August gained 0.52% to $3,304.75/oz.

Bullion fell nearly 3% last week, marking its steepest weekly drop since early May, and was on track to end the month slightly lower as early gains from geopolitical tensions were erased by losses after the Israel-Iran ceasefire.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.