Canada’s main stock index was headed for a record high on Friday, as a better-than-expected U.S. jobs report and signs of easing trade tensions between Washington and China fueled investor optimism.
The Toronto Stock Exchange’s S&P/TSX composite index was up 0.6% at 26,486.37 points. The index was set to eclipse Tuesday’s record closing high of 26,426.64 if gains hold.
U.S. nonfarm payrolls rose by 139,000 jobs last month, data released on Friday showed, while economists polled by Reuters had expected a job growth of 130,000.
Meanwhile, White House trade adviser Peter Navarro said on Friday that a planned meeting between U.S. and Chinese officials on trade is expected within seven days, giving hope that the trade war between the world’s two largest economies might de-escalate.
Separately, China on Friday called to improve bilateral ties with Canada.
Earlier this week, U.S. President Donald Trump had doubled tariffs on imports on steel and aluminum.
TSX edges higher amid US-China trade talks and upcoming jobs data
“It’s just a ploy to get everyone to the table and to try to make a deal,” said Michael Constantino, CEO of online investment platform Webull Canada.
Canada’s Industry Minister Melanie Joly said on Thursday that Prime Minister Mark Carney and Trump are in direct communication as part of Ottawa’s bid to persuade Washington to lift tariffs.
“I think the prime minister of Canada and President Trump will at some point come together and do what’s best for both countries,” Constantino said.
Canada’s unemployment rate in May jumped to its highest level in almost nine years, excluding the peak of the COVID-19 pandemic.
On TSX, information and technology stocks gained 1.4% on Friday, tracking gains in tech-heavy Nasdaq index.
Energy subindex gained 1.3% as oil prices rose slightly and were on track for their first weekly gain in three weeks.
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