The S&P/TSX Composite eased alongside US markets the same session the Federal Reserve raised its policy rate for the first time since 2023, with the retreat from its recent high concentrated in rate-sensitive and financial names. The same day, Canada and the European Union moved to formalize a strategic alliance on trade and defence, a pivot read as an effort to diversify away from reliance on Washington as currency pressure builds.
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The S&P/TSX Composite closed July at 35,226, up 1.06% for the month, a modest headline figure that conceals sharp intra-month swings.
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Brent and WTI crude both surged in July, with WTI ending the month at $85.47, up 23.0%, after round-tripping from a five-month low near $68.74.
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Oil touched a six-week high of $92.19 on Thursday after Houthi forces struck Saudi tankers, then eased on reports of Pakistan-brokered mediation between the parties.
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Oil, the Canadian dollar, and the TSX diverged over the week ending July 24, even as crude posted its strongest weekly gain since the war began in February.
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Brent was the only one of the three to finish above its starting level, while the index and gold both fell.
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