Canadian Stocks Rise on Softer Fed Outlook

The S&P/TSX Composite Index rose 0.3% to close at 34,967 on Thursday, as a weaker-than-expected US jobs report tempered expectations of further Fed rate hikes. US job growth slowed more than expected in June, pointing to a cooling labor market and prompting investors to scale back bets on near-term tightening. Meanwhile, Iran and the US concluded another round of indirect talks in Doha without a clear breakthrough toward a lasting peace agreement. Oil prices still declined as supply concerns around the Strait of Hormuz continued to ease, reducing energy-driven inflation pressures and reinforcing expectations that the BoC could adopt a more dovish stance. Financial stocks traded mixed, with Brookfield rising 1.7%, while RBC fell 1.1%. Mining shares advanced on higher gold prices, with Barrick up 4% and Franco-Nevada gaining 4.3%. Shopify jumped more than 4.5% after reaching a settlement with Shopline, a company owned by Joyy.

The S&P/TSX Composite Index edged up to trade near the 35,000 mark on Thursday as investors assessed the latest US payrolls report for signals on the Fed's policy path. A weaker-than-expected labor market reading reduced expectations of further Fed rate hikes this year. Meanwhile, oil prices extended losses and remained near pre-conflict levels, easing inflation concerns and reinforcing expectations that the BoC may adopt a more dovish stance. Geopolitical tensions remained in focus after Iran and the US concluded a round of indirect talks in Doha without a clear breakthrough, although concerns over disruptions in the Strait of Hormuz continued to ease. Financial stocks traded mixed, with Brookfield gaining over 0.5% while TD Bank fell nearly 1%. Gold prices edged higher, lending support to mining stocks, with Barrick and Franco-Nevada rising more than 3% and WPM adding 3.5%. Shopify jumped over 5% after reaching a settlement with Shopline, a company owned by Joyy.

Futures tracking the S&P/TSX Composite Index were little changed on Thursday as investors assessed the latest US payrolls report for signals on the Federal Reserve’s policy path. A weaker-than-expected labor market reading reduced expectations of further Fed rate hikes this year. Oil prices extended losses and remained near pre-conflict levels, easing energy-driven inflation concerns and reinforcing expectations that the Bank of Canada may take a more dovish stance. Geopolitical tensions remained in focus after Iran and the US concluded another round of indirect talks in Doha without a clear breakthrough, although concerns over disruptions in the Strait of Hormuz continued to ease. Gold prices also edged higher, lending support to mining stocks. On trade, the US rejected an early renewal of the USMCA, keeping the agreement in force under its current framework, with annual reviews continuing until its scheduled expiration unless member countries agree on revisions.