The S&P/TSX Composite Index climbed 1% to close at 35,503 as the recent oil rally lost momentum, easing worries about energy-driven inflation and driving Canadian bond yields lower. Softer-than-expected US payroll data further supported rate-sensitive sectors, with markets dialing back expectations for a Federal Reserve rate hike this month.
Financials advanced, led by a 1.1% gain in CIBC and a 2% rise in Great-West Lifeco. Technology shares also moved higher, mirroring strength in the Wall Street AI trade: Shopify added 1.7%, while Celestica jumped 3.9%.
Mining stocks rose despite a pullback in gold prices, as the weaker US jobs report tempered Fed tightening expectations and improved the outlook for the metal. Agnico Eagle gained 2.1%, and WPM rose 2.6%.
On the policy front, Prime Minister Carney announced that Canada will fast-track approval for a proposed crude oil export pipeline to the West Coast, a project seen as central to efforts to diversify the country’s economy away from its heavy reliance on the United States.