Canada’s main stock index struggled for direction on Friday, as weakness in mining shares offset optimism over upbeat domestic jobs data and positive signals from Russian President Vladimir Putin on talks with Ukraine.
At 9:46 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was up 18.55 points, or 0.09%, at 21,600.25 in choppy trade.
“Canada is caught in between two forces, one there’s a general rebound in global stocks today and on the other hand we are seeing that commodities have come off a little bit,” said Colin Cieszynski, chief market strategist at SIA Wealth Management.
On the economic front, Canada posted a blockbuster job gain in February, easily beating expectations, while the unemployment rate dropped below its pre-pandemic level for the first time, data from Statistics Canada showed.
“… restrictions started to come off in February and continued into March and we saw the spike in commodity prices also helping employment in Canada with energy and mining still being sizable sectors in this country,” Cieszynski added.
The financials sector gained 0.8%, while the energy sector climbed 0.7% as US crude prices rose 1.0% a barrel, while Brent crude added 1.1%.
The materials sector, which includes precious and base metals miners and fertilizer companies, lost 2.2% as gold futures fell 1.3% to $1,972.4 an ounce.
The benchmark index has gained 0.8% so far this week and was set for its third consecutive weekly gain, supported by rising oil prices after a wave of Western sanctions on Russia’s oil imports over its invasion of Ukraine triggered supply concerns.
Global equities extended their gains after Putin said there had been some progress in Moscow’s talks with Ukraine, but provided no details.
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