(Reuters) - Canada's benchmark index inched lower on Wednesday, dragged by heavyweight energy and mining shares, while investors assessed tariff-related updates and key U.S. inflation data.
The S&P/TSX composite index was down 0.1% at 27,027.81 points.
U.S. President Donald Trump announced a 19% tariff on Indonesian goods as part of a new deal, ahead of an August 1 deadline for broader tariff hikes.
Canada is open to considering limits on softwood lumber exports to the U.S. to try to ease some trade friction, British Columbia Premier David Eby told Bloomberg News on Wednesday.
"A lot of the conversations that a lot of people are having right now is let's not be overly complacent about tariffs or at the end of the day, it will have a real world impact eventually and so it's best to prepare for it," said Jay Bala, co-founder and CEO at AIP Asset Management.
In the U.S., producer prices held steady in June, defying expectations as higher costs for tariff-hit goods were offset by a slump in services.
On Tuesday, data showed Canada's annual inflation rose to 1.9% in June from 1.7% in May.
On TSX, mining shares fell 0.5%. Energy stocks fell 0.8%, tracking a fall in oil prices with Baytex Energy down 1.7%.
Conversely, consumer staples added 0.4%, while real estate and financials advanced over 0.2% each.
Among individual stocks, Canadian gold and copper miner Aura Minerals' shares were down 3.8%, a day after saying it plans to raise about $196.4 million from its U.S. initial public offering.
Equinox Gold Corp rose 2.1% after brokerage TD Cowen upgraded the company's rating. Lundin Gold fell 4% after TD Cowen cut its rating.
Cogeco Communications lost 3.9% after the telecommunications company reported quarterly results below expectations.
(Reporting by Twesha Dikshit and Sukriti Gupta in Bengaluru; Editing by Sahal Muhammed)
By Twesha Dikshit and Sukriti Gupta
