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* Posts highest closing level since April 20
* Mining stocks lead gains as gold rises
The TSX gained value due to investors being encouraged by recent corporate earnings growth. Weaker-than-expected domestic jobs data also tempered expectations for interest rate hikes, contributing to the index's rise.
Canada's unemployment rate rose to a six-month high in April, with the economy losing 17,700 jobs. This weaker-than-expected jobs data led to tempered expectations for interest rate hikes by the Bank of Canada.
The materials group, including mining stocks, led the gains as gold prices increased. The consumer discretionary sector also saw a rise, with Aritzia shares up after the clothing retailer beat earnings estimates.
US employment data indicated labor market resilience, reinforcing expectations that the US Federal Reserve will leave interest rates unchanged for some time. Market pricing suggests a high probability of the Fed holding rates steady through its December meeting.
Renewed hostilities near the Strait of Hormuz have created a choppy market environment and kept sentiment fragile. Persistent geopolitical uncertainty, coupled with volatility in currency and crude oil prices, continues to weigh on investor sentiment.
TORONTO, - Canada's main stock index rose to a near three-week high on Friday as investors cheered recent growth in corporate earnings, and after weaker-than-expected domestic jobs data tempered expectations for interest rate hikes.
The Toronto Stock Exchange's S&P/TSX composite index ended up 221.14 points, or 0.7%, at 34,077.76, marking its highest closing level since April 20. For the week, the index was up 0.6%, after two straight weekly declines.
"There is still a lot of uncertainty, but it is hard to ignore the strength in corporate fundamentals," said Angelo Kourkafas, a senior global investment strategist at Edward Jones. "I think corporate profits are doing the heavy lifting for the index." The United States said it expected an Iranian response as soon as Friday to its latest proposal to end the war in the Gulf, even as U.S. and Iranian forces traded fire and the United Arab Emirates came under renewed attack.
Canada's unemployment rate rose to a six-month high in April to 6.9% as the economy lost a net 17,700 jobs, indicating continued weakness in a labor market that has struggled in the face of U.S. tariffs.
"The implication for markets is that will likely keep the Bank of Canada on hold and it's paring back some of the rate hike expectations that we've seen in the bond market," Kourkafas said.
Canada's 2-year yield fell 7.4 basis points to 2.860%, extending its pullback from a six-week high of 3.077% on Monday. In contrast, U.S. employment data pointed to labor market resilience, reinforcing expectations the U.S. Federal Reserve would leave interest rates unchanged for some time.
The materials group, which includes metal mining shares, rose 3.3% as the price of gold increased. Another bright spot was the consumer discretionary sector . It added 1.1%, with shares of Aritzia up 4.5% after the clothing retailer beat earnings estimates.
Enbridge reported first-quarter adjusted profit that surpassed analysts' expectations. Still, the pipeline operator's shares were down 0.5%, which helped cap gains for the energy sector. U.S. crude oil futures settled 0.6% higher at $95.42 a barrel.
This article was generated from an automated news agency feed without modifications to text.
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