Canada's main stock index, the S&P/TSX composite, edged higher in late-morning trading on Friday, while U.S. stock markets were mixed as investors weighed economic data and corporate earnings.
The S&P/TSX composite index was up 0.2% in late-morning trading, driven by gains in the energy and financial sectors. The Canadian dollar traded at 78.36 cents US, down from Thursday's close of 78.45 cents US.
U.S. markets show mixed results
In New York, the Dow Jones industrial average fell 0.1%, while the S&P 500 index was flat and the Nasdaq composite rose 0.3%. The mixed performance reflected ongoing uncertainty about the economic outlook and interest rate policy.
Investors are closely watching corporate earnings reports for signs of how companies are navigating inflation and supply chain challenges. The Bank of Canada recently raised its key interest rate by 0.25 percentage points to 4.75%, the highest level since 2001.
According to the Canadian Press, the S&P/TSX composite has gained about 5% so far this year, outperforming U.S. indexes. The energy sector has been a key driver, benefiting from higher oil prices.
Oil prices rise
Oil prices rose in late-morning trading, with the August crude contract on the New York Mercantile Exchange up 0.8% at $82.45 US per barrel. The September crude contract on the Intercontinental Exchange was up 0.6% at $85.90 US per barrel.
The rise in oil prices supported energy stocks on the TSX, with Suncor Energy Inc. up 0.5% and Canadian Natural Resources Ltd. up 0.6%. Financial stocks also gained, with Royal Bank of Canada up 0.3% and Toronto-Dominion Bank up 0.4%.
Other market movers
In other markets, gold prices were flat, with the August gold contract on the COMEX at $1,932.40 US per ounce. The September copper contract was down 0.2% at $3.78 US per pound.
The mixed performance in U.S. markets came as investors digested data showing that the U.S. economy added 209,000 jobs in June, slightly below expectations. The unemployment rate fell to 3.6%, near historic lows.
Overall, market participants remain cautious as they assess the impact of higher interest rates on economic growth and corporate profits. The S&P/TSX composite's modest gains suggest a wait-and-see approach among Canadian investors.
