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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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U.S.-China Rare Earth Trade Deal: A Strategic Shift in Global Supply Chains

In a significant development, former President Donald Trump announced that the United States and China have finalized a trade deal concerning rare earth minerals. The agreement, which awaits formal approval from Chinese President Xi Jinping, is expected to grant the U.S. greater access to China's rare earth supplies while imposing a 55% tariff on Chinese goods.

Rare earth minerals are crucial for various industries, including defense, electronics, and renewable energy. China dominates the global market, producing nearly 90% of the world's refined rare earths. The deal aims to stabilize supply chains and reduce U.S. dependence on alternative sources.

As part of the agreement, China will provide magnets and necessary rare earths upfront, while the U.S. will ease restrictions on Chinese students attending American universities. This move signals a broader effort to mend trade relations between the two economic giants.

While the deal offers short-term relief, experts caution that the U.S. must develop domestic rare earth processing capabilities to ensure long-term stability. The agreement marks a pivotal moment in global trade, with potential implications for industries reliant on these critical materials.

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