The S&P/TSX Composite Index climbed 0.7% to a record close of 36,381 on Friday, driven by a strong rally in mining shares. Gold producers led the advance as bullion prices jumped following weaker-than-expected US labor data and lower energy costs, both of which dampened expectations of a Federal Reserve rate hike this year. The US economy unexpectedly shed jobs in July, easing concerns that a resilient labor market could stoke inflation.
Among major miners, Agnico Eagle rose 5.9%, Barrick added 5%, and WPM advanced 6.6%, while other gold stocks gained between 2.6% and 14%. Technology shares also benefited from the improved risk sentiment spilling over from Wall Street, with Shopify up 2.4%.
In contrast, financials lagged after stronger-than-expected Canadian employment data bolstered the case that the Bank of Canada could resume tightening if inflationary pressures persist. Royal Bank of Canada slipped 0.7%, and Toronto-Dominion Bank declined 0.4%.
