The S&P/TSX Composite Index climbed more than 0.5% on Friday to trade above 36,000, driven by gains in the banking and energy sectors. A recent oil rally began to lose steam, easing pressure on credit-sensitive stocks that had been weighed down by concerns over energy-fueled inflation. Bond yields also held below their recent highs.
Major banks advanced, with RBC, BMO, Scotiabank, and CIBC each adding roughly 0.5%. Energy producers also moved higher despite the moderation in crude prices: Canadian Natural rose more than 1%, while Suncor, Imperial Oil, and Cenovus each gained over 1.5%. Energy infrastructure names participated in the upswing as well, with Enbridge rising more than 0.5%.
Mining stocks were more muted, even as silver and copper prices strengthened, with gold trading close to unchanged. Meanwhile, Bank of Canada Governor Tiff Macklem noted that interest rates had not yet been raised, but cautioned that the longer energy prices remain elevated, “the harder that gets.” Market pricing currently anticipates a rate hike at the central bank’s next policy meeting.