TSX Recovers at Week's End

The S&P/TSX Composite Index faced a difficult week as the benchmark shed 0.9% to close at 32,542 on Friday amid intensifying regional conflict and a souring domestic economic outlook. Investors reacted to Statistics Canada data showing a surprise loss of 83,900 jobs in February and an unemployment rate that climbed to 6.7% as manufacturing sales also declined. This domestic labor market deterioration pressured financial and technology heavyweights while energy producers continued to navigate high volatility as the Strait of Hormuz blockade kept crude prices elevated. At the same time, major bullion miners Agnico Eagle, Barrick Gold, and Wheaton Precious Metals tumbled between 3.4% and 4.3% as bullion prices buckled under the pressure of a stronger US dollar. Tech and financials also finished firmly in negative territory.

The S&P/TSX Composite Index rose around 0.5% to above the 33,050 mark on Friday as investors navigated a cooling domestic labor market alongside elevated crude oil prices and ongoing geopolitical tensions. The labor market deteriorated in February with the unemployment rate rising to 6.7% and a loss of 83,900 jobs which signaled a deeper cooling of the domestic economy and added to looser monetary policy expectations by the Bank of Canada. Meanwhile, weak US GDP figures moved expectations for more accommodative monetary policy by the Fed which lifted credit sensitive heavyweight Shopify over 2% while major financial institutions including RBC, TD Bank, and BMO added over 1%. Conversely, major miners struggled to benefit from higher bullion prices as a stronger US dollar capped the upside for gold margins.

The S&P/TSX Composite Index retreated 0.8% to close at 32,841 on Thursday as intensifying conflict in the Middle East and spiking crude oil prices fueled widespread risk aversion. Investors moved away from equities as threats to shipping in the Strait of Hormuz deepened concerns regarding global supply chain disruptions and persistent inflation. While the energy sector found support from higher oil prices, the broader market suffered under pressure from the financial and technology sectors as major banks and firms like Shopify (-2.3%) faced significant selling. Miners Agnico Eagle, Barrick, and Wheaton Precious lost between 1.6% and 1.8% as bullion prices faced offsetting pressure from a stronger US dollar and climbing Treasury yields. Markets remained focused on the evolving regional situation and its potential impact on future monetary policy decisions.