By Robb M. Stewart


Shares on Canada's main exchange advanced modestly as Ottawa and Washington agreed to restart trade talks following Prime Minister Mark Carney's decision to drop a disputed digital services tax that would have target big U.S. tech companies.

In midday trading, the Toronto Stock Exchange's S&P/TSX Composite Index was 0.1% higher at 26724.26. That has the index on track for rise of 2.1% in June, a second straight monthly advance.

Monday's rise reverses into a 0.2% drop Friday after President Trump said he was terminating trade negotiations with Canada over what he called an egregious tax that unfairly targeted U.S. tech companies. Carney late Sunday announced he would rescind a digital-services tax set to collect billion of dollars that had been announced in 2020 to tackle the fact that many large technology companies operating in the country might not pay tax on revenue generated from Canadians.

U.S. National Economic Council Director Kevin Hassett on Monday said talks would resume with Canada, and that other nations would similarly have to drop digital services taxes or face new tariffs.

Mining and electronic technology stocks led broad gains in Toronto, countering weakness among tech-services and industrial stocks. Bombardier was one of the biggest drivers of the market, rising 4.6%.

Gold producers were higher, buoyed by a rise in gold futures as investors remained interested in perceived safe-haven assets. Barrick Mining was 0.2% higher, while Agnico Eagle Mines and B2Gold each gained 0.6%.

The blue-chip S&P/TSX 60 was up 0.1% 1591.38.


Other market movers:

Arizona Metals' shares slumped 28% to C$1.01 after the company disclosed an initial mineral resource estimate for its Kay mining project in Arizona, with 650 million pounds of copper equivalent in the indicated category alone.

Touchstone Exploration fell 25% to C$0.28 after the energy company said it planned to issue new shares and was reviewing its options after it said Portillion Capital Asset Management failed to fulfill a subscription commitment under a stock placement arrangement.


Write to Robb M. Stewart at robb.stewart@wsj.com


(END) Dow Jones Newswires

06-30-25 1224ET