FX.co ★ TSX Retreats on Monday

The S&P/TSX Composite Index experienced a decline of approximately 0.3%, falling below the 24,150 level on Monday. This drop came as investors returned from a holiday to face escalating trade tensions and resurrected concerns about the Federal Reserve's independence. The energy sector bore the brunt of the downturn, with companies like Canadian Natural, Suncor, Imperial Oil, and Cenovus experiencing decreases ranging from 1.5% to 2.9%, mirroring weaker oil prices. Additionally, technology firms such as Shopify, Constellation Software, and Celestica saw declines between 0.8% and 2.5%. Market sentiment was further negatively impacted by Beijing's accusations that Washington is improperly using tariffs, coupled with reports suggesting that the U.S. administration is urging its trading partners to curb business dealings with China, the world's second-largest economy. Investors' risk appetite waned further following President Donald Trump's public criticism of Federal Reserve Chair Jerome Powell. Moreover, White House adviser Kevin Hassett's disclosure that the administration is contemplating the possibility of removing Powell was perceived as threatening the autonomy of the central bank.