The Toronto Stock Exchange (TSX) approached recent record highs on Friday, driven by strong performance in resource shares. The TSX ended the day up 0.85%, closing at 25,658.86 points. Energy stocks led the charge, with a 2.1% increase as oil prices settled up 1.9%.
The materials sector also saw significant gains, rising 2% as gold reached new record highs. MDA Space, a notable performer, saw its stock value jump by nearly 13%. The positive movement in the TSX comes amidst a broader global trend of rising shares.
Markets largely ignored U.S. President Donald Trump’s threats of tariffs on steel and aluminum, which could potentially limit the scope of future rate cuts. In the U.S., Wall Street’s main indexes opened higher, recovering from last week’s declines. Steelmakers led the charge, with the Dow Jones Industrial Average rising 0.21%, the S&P 500 gaining 0.34%, and the Nasdaq Composite advancing 0.74% at the opening bell.
Stephen Dover, head of the Franklin Templeton Institute, commented on the potential impact of the tariffs, stating, “These tariffs could be a strategic negotiating tool for President Trump or the beginning of a prolonged trade war.
Energy and materials propel TSX
Nearly half of U.S. imports serve as inputs for domestic companies, meaning businesses will either have to pass higher costs to consumers, absorb lower margins, or adjust supply chains entirely.
In Europe, the pan-European STOXX 600 was up 0.57% in morning trading, with gains seen in major indexes such as Britain’s FTSE 100, Germany’s DAX, and France’s CAC 40.
Asian markets also closed higher, with Japan’s Nikkei up 0.03% and Hong Kong’s Hang Seng rising 1.84%. Commodities saw a rebound, with oil prices climbing despite lingering fears of a potential global trade war. Brent crude futures rose 1.4% to US$75.71 a barrel, while West Texas Intermediate (WTI) crude traded at US$72.05 a barrel, up 1.5%.
Gold also hit a record high, with spot gold up 1.5% at US$2,903.19 an ounce and U.S. gold futures climbing 1.5% to US$2,929.70. The Canadian dollar weakened against its U.S. counterpart, trading between 69.54 and 69.98 U.S. cents in early trading. The U.S. dollar index gained 0.16% to 108.22, while the euro and British pound saw slight declines against the greenback.
In corporate news, Toronto-Dominion Bank announced its intention to exit its full equity investment in U.S. financial services firm Charles Schwab. McDonald’s reported a steeper-than-expected drop in quarterly U.S. comparable sales due to a brief E. coli outbreak and cautious consumer spending.
Key economic indicators to watch in the coming days include China’s CPI, PPI, aggregate yuan financing, new yuan loans, and the Bank of Canada’s Market Participants Survey for the fourth quarter.
