TSX Climbs 245 Points as Materials Lead and the Loonie Firms
Canada's main index rose about 0.7% to 36,381 on Friday, led by miners, while the loonie strengthened to 71.72 cents US to cap a week bookended by a strong Canadian jobs report.
The S&P/TSX Composite Index climbed 244.92 points, or about 0.7%, to close at 36,381.23 on Friday, with the advance led by the basic-materials sector as metals prices firmed. It was a solid finish to the week for Canadian stocks, back near the record territory the index touched earlier in the summer.
The loonie strengthened
The Canadian dollar continued its climb, closing at 71.72 cents US, up from 71.34 cents Thursday. The two-day rise was helped by this morning's much-stronger-than-expected Canadian jobs report — 75,000 positions added in July and unemployment falling to 6.4% — which stood in sharp contrast to a soft U.S. print.
South of the border
U.S. markets also rose after data showed American employers unexpectedly cut 23,000 jobs in July, reviving hopes that the Federal Reserve could cut rates sooner. The Dow gained 151.83 points to 54,036.93, the S&P 500 added 47.68 to 7,757.64, and the Nasdaq jumped 342.26 to 26,690.62.
For Canadian investors
A firm Canadian jobs market alongside a softening U.S. one is the kind of cross-current that keeps the rate path uncertain on both sides of the border. For long-term investors, a broadly diversified portfolio spanning Canadian and U.S. markets remains a steadier way through weeks like this than trading each data surprise.
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General news and information, not individualized financial advice. Figures reflect the publication date.