Toronto shares cruised to more than a two-month high on Friday, driven by energy stocks as oil prices rose on hopes of economic stimulus from China and tighter crude supplies.
At 10:12 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was up 71.6 points, or 0.35%, at 20,508.47. The index has gained nearly 1.3% so far this week.
Heavily weighted energy stocks climbed 0.7% and were set for two consecutive weekly gains.
Oil prices ticked higher as China announced measures to shore up the country’s sluggish growth, that fanned hopes of demand from the top consumer, and was supported further by tightening crude supplies.
Data showed Canadian retail sales grew 0.2% in May from April at C$66.03 billion ($50.14 billion), led by increases at motor vehicle and parts dealers as well as food and beverage retailers.
“The Canadian consumer looks to be losing some wind beneath its wings in the face of still-elevated inflation,” said Shelly Kaushik, economist at BMO Capital Markets.
Retail sales were likely unchanged in June.
“Advance figures for June suggest consumer spending could take a meaningful hit to close out Q2, setting the stage for weaker momentum in the second half of the year,” Kaushik added.
Technology stocks recovered from their decline in the previous session to gain 0.5%, mirroring sentiment in the U.S.
Concerns over supply chain disruptions and inflation somewhat subdued after part of Canada’s Pacific dock workers’ union said it reached a new tentative contract agreement with employers.
Shares of Canada-based logistics provider Mullen Group rose 5% after at least five brokerages raised price target on the stock.
Trulieve Cannabis shares fell 3% after the pot producer said Chief Financial Officer Tim Mullany has quit just 10 days after taking over the role, citing personal reasons.
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