FX.co ★ TSX Approaches Record Highs

On Friday, the S&P/TSX Composite Index increased by 0.3%, closing at 26,429, nearing its record high. This uptick resulted from alleviated concerns over trade-war tensions and recent labor market developments. A notably positive phone conversation between Xi Jinping and Donald Trump on Thursday helped ease apprehensions about U.S. tariffs on steel and aluminum potentially hindering Canadian exports. This assurance was further reinforced by Ottawa's confirmation of "intensive and live" negotiations with Washington aimed at securing exemptions for Canada’s metals sector. At the same time, Statistics Canada released its May employment report, revealing a modest addition of 8,000 jobs and an unemployment rate rising to 7%. This data highlights the persistent challenges within the labor market, putting pressure on the Bank of Canada to consider further interest rate cuts following their recent pause. The technology giant, Shopify, prominently contributed to the market's gains, surging by 6.3%, while oil producers also experienced growth in line with a slight rise in crude prices. Companies such as Canadian Natural, Suncor, Imperial Oil, and Cenovus saw their shares increase by 0.6% to 2.7%. For the week, the TSX experienced a 1% gain overall.