TSX Nears Record High on Mining Rally

The S&P/TSX Composite Index gained nearly 1% to trade above the 35,000 mark on Friday, approaching record highs on gains from gold miners. Gold advanced after US nonfarm payrolls rose nearly half what was expected in June, boosting hopes for a more dovish Fed. Agnico Eagle, WPM, and Barrick gained about 2%. Meanwhile, BHP Group agreed to transfer its San Manuel property in Arizona to Faraday Copper (+1.5%) in exchange for a 30% stake in the Canadian miner, which is seeking to develop a copper hub around its adjacent Copper Creek project. Oil prices remained near pre-conflict levels amid optimism over US-Iran peace efforts, easing concerns about energy-driven inflation and supporting financial stocks, with Scotiabank and BMO both rising nearly 1%. Separately, AtkinsRéalis gained 1% after saying Turkey could begin formal talks on a CANDU nuclear power plant following an early reactor review later this summer.

Futures tracking the S&P/TSX Composite Index edged higher on Friday, supported by firmer gold prices after weaker-than-expected US jobs data tempered expectations of a near-term Federal Reserve rate hike. Gold gained after data showed US nonfarm payrolls rose by 57,000 in June, well below forecasts of 110,000, boosting hopes for a more dovish Fed and supporting mining shares. Meanwhile, BHP Group agreed to transfer its San Manuel property in Arizona to Faraday Copper in exchange for a 30% stake in the Canadian miner, as Faraday seeks to develop a copper hub around its adjacent Copper Creek project. Oil prices remained near pre-war lows amid optimism over US-Iran peace efforts, easing concerns about energy-driven inflation and supporting financial stocks. Separately, AtkinsRéalis said Turkey could begin formal talks on a CANDU nuclear plant after completing an early reactor review later this summer.

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.