FX.co ★ Canadian Stocks Rise on Softer Fed Outlook

The S&P/TSX Composite Index edged up 0.3% to close at 34,967 on Thursday, supported by a weaker-than-expected US jobs report that tempered expectations of further Federal Reserve rate hikes. US job growth slowed more than anticipated in June, signaling a cooling labor market and leading investors to scale back bets on additional near-term tightening.

On the geopolitical front, Iran and the United States completed another round of indirect talks in Doha, though without a clear breakthrough toward a lasting peace agreement. Despite the lack of progress, oil prices declined as earlier supply concerns around the Strait of Hormuz continued to ease, reducing energy-driven inflation pressures and strengthening expectations that the Bank of Canada may adopt a more dovish policy stance.

Sector performance was mixed. Financials were uneven, with Brookfield gaining 1.7% while RBC slipped 1.1%. Mining stocks advanced alongside higher gold prices, with Barrick rising 4% and Franco-Nevada adding 4.3%. In the technology space, Shopify climbed more than 4.5% after reaching a settlement with Shopline, a company owned by Joyy.