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TSX Slumps as Central Banks Hold Steady

  Canada’s Main Index Suffers Sharpest Drop Since May The Toronto Stock Exchange’s S&P/TSX composite index fell 169.92 points, or 0.6%, to close at 27,369.96 on Wednesday, marking its steepest single-day decline in ten weeks. The drop followed a record high the previous day, underscoring investor unease as both the U.S. Federal Reserve and the Bank of Canada opted to keep interest rates unchanged. The materials sector led the retreat, sliding 2.1% amid tumbling copper and gold prices. Financials and technology also posted losses, down 0.6% and 0.5% respectively, as eight of the index’s ten major sectors ended in the red. Market sentiment soured after the Fed’s decision to hold rates steady offered no clear timeline for future cuts, disappointing investors hoping for dovish signals. Meanwhile, the Bank of Canada maintained its benchmark rate at 2.75% for the third consecutive meeting, citing reduced risks of a global trade war. Among individual stocks, Capital Power Corp sa...
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EU Faces Crucial Choice: Swift U.S. Trade Deal or Strategic Patience

European Union leaders are meeting in Brussels today to determine whether to accept a fast-tracked trade agreement with the United States—despite its tough terms—or hold out for a more balanced deal, even at the risk of escalating tensions.

With a July 9 deadline set by President Donald Trump, the pressure is mounting. The U.S. currently imposes a 10% tariff on most EU goods, with even steeper rates—up to 50%—on steel, aluminum, and automobiles. EU officials fear these could rise further if no agreement is reached.

German Chancellor Friedrich Merz has voiced strong support for a quick resolution, emphasizing the need to avoid a deeper trade conflict. “It is in everyone’s interest that the trade conflict with the United States does not escalate further,” Merz told parliament.

The European Commission has proposed eliminating tariffs on industrial goods and increasing EU imports of U.S. liquefied natural gas and soybeans. However, Washington has shown little interest in these terms, focusing instead on regulatory issues the EU is reluctant to change.

Some EU countries are prepared to accept the 10% baseline tariff to protect their industries, while others advocate for retaliatory measures. The bloc has already approved tariffs on €21 billion worth of U.S. goods and is debating further actions targeting up to €95 billion more.

As leaders weigh their options, the outcome of this summit could shape transatlantic trade relations for years to come.

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