Canada’s main stock index ended higher on Thursday, led by gains for metal mining shares, but the move was limited as investors awaited employment data on both sides of the border and braced for a potentially more volatile year for financial markets.
The S&P/TSX composite index ended up 21.68 points, or 0.1%, at 25,073.36, adding to the prior day’s gains.
Trading volumes were lighter than usual, with the U.S. stock market closed for a national day of mourning to mark the death of former President Jimmy Carter.
“It feels like the calm before the storm ... I think investors pretty much worldwide are probably bracing themselves for a more volatile 2025,” said Elvis Picardo, portfolio manager at Luft Financial, iA Private Wealth.
The TSX notched a gain of nearly 18% in 2024 but has pulled back from a December peak as a hawkish shift by the Federal Reserve and the threat of U.S. trade tariffs weighed on sentiment in recent weeks.
U.S. and Canadian employment data, due on Friday, could offer clues on prospects of additional interest rate cuts from the Federal Reserve and the Bank of Canada.
Economists forecast that Canada’s economy added 25,000 jobs in December and the unemployment rate edged up to 6.9% from 6.8% in November. Non-farm payrolls in the U.S. are expected to rise by 160,000 jobs after surging by 227,000 in November.
The materials group Thursday on the TSX rose 1.5%, reaching its highest closing level since Dec. 12, as gold and copper prices climbed.
Industrials were a drag, falling 0.6%, as railroad stocks lost ground, and utilities ended 0.5% lower.
In corporate news, Canadian Natural Resources said it expects production to increase 12% and capital spending to rise 13.5% in 2025, as it bets on higher demand amid tight oil supplies. The company’s shares were down 0.2%.
U.S. Treasury yields retreated from an eight-month high while the U.S. dollar strengthened against major currencies, as investors reevaluated the Federal Reserve’s interest rate policy for 2025 as the U.S. economy shows signs of resilience.
The benchmark 10-year U.S. Treasury yield fell 0.45 basis points to 4.689%. It had hit a peak of 4.73% on Wednesday, the highest since April 2024.
Reuters, Globe staff