TSX Edges Higher After Jobs Report

The S&P/TSX Composite Index edged up to trade above 35,000 on Friday, near its record amid a strong jobs report. Domestic employment in rose by 18,200 in June to extend the 88,000 addition in May, while the unemployment rate unexpectedly fell and tied the lowest level in nearly two years. Financials traded mixed as a strong economy balanced with less urgency for the BoC to cut rates, with Brookfield up nearly 2%, while TD Bank shed about 1%. In the tech sector, Shopify jumped 4%, following an earlier rally in the US after SK Hynix raised $26.5 billion in its American depositary receipt offering, powering through volatility to deliver the largest-ever US first-time stock sale by a foreign company. Elsewhere, Velan (-2%) reported an adjusted first-quarter net loss.

Futures tracking the S&P/TSX Composite Index were little changed on Friday as investors assessed June's jobs report and renewed tensions in the Middle East. Canada added 18,000 jobs in June, above expectations for a 10,000 increase, following a gain of 88,000 in May. Meanwhile, oil prices ticked higher as renewed US-Iran hostilities disrupted shipping through the Strait of Hormuz, reviving concerns over supply disruptions and energy-driven inflation. Also, gold prices slipped, weighing on miners. Elsewhere, Velan reported an adjusted first-quarter net loss. On the trade front, Prime Minister Carney said Saudi Arabia could help Canadian mining firms expand globally and met with the head of Saudi Aramco to discuss deeper cooperation.

The S&P/TSX Composite Index gained 0.8% to close at 35,200 on Thursday, led by mining and financial stocks. Gold prices climbed as the US dollar weakened and investors sought safe-haven assets, boosting miners. Financials also advanced, with RBC rising 1.4% and TD Bank adding 1.1%. Elsewhere, Triple Flag gained 2.9% after reporting preliminary second-quarter revenue of $129.2 million, up from a year earlier. Firan Technology fell 2.8%, reversing earlier gains despite beating second-quarter revenue estimates. Meta also announced plans to build its first Canadian data center in Alberta, underscoring continued investment in AI infrastructure. Investors now await Canada's June employment report on Friday for further clues on the BoC's policy outlook. Markets widely expect the central bank to leave interest rates unchanged at its next meeting.