FX.co ★ TSX Set for Fresh Record Highs, Weekly Gains

The S&P TSX Composite Index increased by approximately 0.3%, surpassing the 32,500 mark for the first time on Friday, setting the stage for a weekly increase exceeding 2%. This rise was largely driven by the performance of commodity producers as investors processed crucial employment reports. Gold mining companies spearheaded the rally, with notable gains observed in Agnico Eagle, Barrick, Wheaton Precious Metals, and Franco-Nevada, who saw their stocks rise between 1.5% and 4.5%. This surge was in tandem with the increase in bullion prices, triggered by U.S. employment data indicative of a stable labor market with low hiring and firing rates, aligning with expectations for lower interest rates. Energy stocks also saw upward movement, with Canadian Natural Resources, Suncor, and Imperial Oil each appreciating over 1.5%, benefiting from crude oil's continued rebound over two sessions. Domestically, December’s employment figures indicated slight job growth and an unemployment rate of 6.8%, slightly exceeding projections. This data suggests increasing labor market slack, supporting the Bank of Canada's view that its policy rate of 2.25% is adequately restrictive.