Canada Daily Briefing

Shopify shed $4.44 to close at $95.40, a 4.45% decline that single-handedly accounted for the bulk of the TSX tech sector's 3.6% drawdown. At roughly $120B CAD market cap, SHOP's weight in the index means days like this ripple across passive Canadian equity products globally. Watch for whether the sell-off reflects broader e-commerce multiple compression or SHOP-specific flow reversal — either way, a close below $95 opens the door to a retest of the $90 support level established in Q1.

The Canadian bank sector fell 1.26% in a session where no single catalyst stood out — this is the slow bleed of BoC rate-cut pricing working against net interest margin assumptions baked into Q2 consensus. RY, TD, and BMO are all trading with compressed forward multiples as the market prices 2-3 more BoC cuts through year-end, squeezing the spread income that drove 2024's earnings outperformance. Investors rotating out of Canadian financials into defensive insurance names (SLF +0.27%) is the tell — that rotation has legs if the BoC signals acceleration at the June meeting.

TC Energy and Enbridge bucked the tape, with TRP rising to $67.06 and ENB to $55.19 — both names acting as a classic flight-to-yield trade when rate-sensitive growth sells off hard. The outperformance is notable because it comes despite CAD softness, which typically pressures USD-denominated pipeline contract valuations. The read here: institutional money is buying Canadian infrastructure yield as a defensive hedge against a prolonged risk-off environment, not chasing growth. If materials and tech continue to bleed, TRP and ENB become consensus longs for the remainder of Q2.