FX.co ★ TSX Rises on BoC Rate-Hold Expectations

The S&P/TSX Composite Index climbed about 1% to near 35,500 on Friday, as weaker labor market data strengthened expectations that the Bank of Canada will hold off on further rate hikes. Employment fell by 68,300, sharply missing forecasts for a 7,000 increase, while the unemployment rate ticked up 0.1 percentage point to 6.5%, in line with expectations.

Canadian government bond yields declined and oil prices eased from recent highs, providing support for interest rate–sensitive sectors. Major banks advanced, with RBC, BMO, Scotiabank, and CIBC each gaining around 0.5%.

Gold prices also moved higher, boosting mining shares: Agnico Eagle, Barrick, and Wheaton Precious Metals (WPM) each rose more than 2%. Energy stocks gained as crude prices remained elevated, with Canadian Natural Resources and Suncor adding about 1%.

In corporate news, Aritzia surged nearly 15% after reporting second-quarter revenue and profit that exceeded analysts’ expectations.