Canada’s main stock index posted strong gains on Friday, adding up to a sixth consecutive weekly gain, as investors anticipate more trade agreements amid easing tariff tension and softer U.S. inflation data.
The TSX Composite Index moved ahead 74.45 points to conclude Friday at 25,971.93, for a gain on the week of 614 points, or 2.4%.
The Canadian dollar dipped 0.13 cents at 71.53 cents U.S.
Investors cheered the 90-day pause in the U.S.-China tariff dispute, which reduces the global recession risks, and the bilateral trade agreement between the U.S. and the U.K. a week ago, igniting hopes for potential trade deals with the U.S.
In corporate news, oil and gas producer Strathcona said late Thursday it plans to launch a $5.93-billion takeover bid for peer MEG Energy.
Strathcona shares were down 66 cents or 2.1%, to $30.26, while those for MEG sprinted $3.99, or 18.7%, to $25.29.
Elsewhere, Lithium Americas fell 44 cents, or 10.1%, to $3.94, after the company filed for a mixed shelf offering of about $1 billion.
Health-care stocks ruled the roost, with Tilray taking on six cents, or 9.7%, to $6.84, while Bausch Health Companies added 13 cents, or 2%, to $6.57.
Consumer discretionary proved the next step down the ladder, with Canadian Tire soaring $5.35, or 3.3%, to $166.15, while Spin Master jumped 69 cents, or 2.8%, to $25.76.
Real-estate also finished strong, with Canadian Apartment REIT units up $1.05, or 2.5%, to $43.04, while Interrent REIT Units inched up 25 cents, or 2.2%, to $11.62.
Materials moved backwards, though, as Ivanhoe Mines handed back 46 cents, or 3.2%, to $13.79, while Ero Copper dropped 68 cents, or 3.6%, to $18.36.
Gold stocks also weakened, with Aya Gold slipping 31 cents, or 2.9%, to $10.28, while New Gold faded 15 cents, or 2.8%, to $5.23.
Markets in Canada will be closed Monday for Victoria Day.
On the economic slate, Statistics Canada reported Friday that Canadian investors acquired $15.6 billion of foreign securities in March, mainly in U.S. bonds.
Meanwhile, foreign investors reduced their exposure to Canadian securities by $4.2 billion, marking a second consecutive monthly divestment.
ON BAYSTREET
The TSX Venture Exchange bounced 5.39 points to 672.84, minimizing the weekly loss to 10.6 points, or 1.54%.
All but two of the 12 subgroups were in the green by the finish, with health-care popping 2.8%, while consumer discretionary stocks up 1.2%, and real-estate up 1%.
The two laggards were materials, down 0.4%, while gold lost 0.1%.
ON WALLSTREET
The S&P 500 rose Friday for a fifth session and posted a sharp weekly gain, as investors looked past the release of disappointing consumer sentiment data and persistent inflation worry.
The Dow Jones Industrials popped 331.99 points to 42,654.74. Friday’s advance put the 30-stock benchmark into positive territory for 2025.
The much-broader index cruised ahead 41.45 points to 5,958.38
The NASDAQ Composite shrugged off early losses and surged 98.78 points to 19,211.10.
Stocks have made a strong comeback since U.S. and Chinese officials earlier this week agreed on a 90-day truce in their tariff measures, which eased investors’ fears of escalating global trade tensions and rising risk to the economy.
For the week, the S&P 500 surged 5.3%, and the Dow gained 3.4%. The NASDAQ Composite jumped 7.2% this week.
Technology stocks also had a strong week.
Shares of Nvidia gained about 16%, while Meta Platforms advanced 8%. Shares of Apple climbed 6%, while Microsoft popped 3%.
A weaker-than-expected reading of consumer sentiment put a dent in overall investor enthusiasm on Friday. The University of Michigan’s survey of consumers fell to 50.8 in May, down from 52.2 in April, which is the second-lowest reading ever behind June 2022.
Consumer expectations for inflation over the next year jumped to 7.3% from 6.5% last month, as survey respondents continue to signal worry tied to President Donald Trump’s tariffs.
Friday could see an uptick in volatility on Wall Street due to a large amount of options contracts that are set to expire. Goldman Sachs estimated that more than $2.8 trillion of notional options exposure will expire on Friday, the biggest such number on record for a May trading day.
Prices for the 10-year Treasury were static, keeping yields at Thursday’s 4.44%.
Oil prices captured 80 cents to $62.42 U.S. a barrel.
Prices for gold dropped $29.10 to $3,107.50
