The S&P/TSX Composite Index climbed more than 0.5% on Friday to trade above 36,000, marking a new record high as mining shares advanced. Gold producers led the gains after bullion prices rallied, with weaker US labor data and softer energy prices dampening expectations of a Federal Reserve rate hike this year.
The US economy unexpectedly lost jobs in July, while oil prices fluctuated amid uncertainty surrounding a potential US–Iran agreement that could restore crude exports through the Strait of Hormuz. Agnico Eagle and WPM each surged more than 7%, Barrick added 5.5%, and other gold miners rose between 4% and 10%.
In contrast, financials and other broader sectors came under pressure, as robust Canadian employment figures heightened the likelihood of a Bank of Canada rate hike if energy prices stay elevated. Canada’s unemployment rate edged down 0.1 percentage point to 6.4%, beating expectations for 6.5%, while employment grew by 75,000, far surpassing the consensus forecast of a 15,000 increase. RBC and TD Bank both fell about 0.5%.
