Canada's main stock index opened higher on Friday, with industrials and financials leading gains as investors assessed the implications of the Middle East conflict and a swath of both domestic and U.S. economic data.
The TSX recovered 14.6 points to begin Friday’s session at 32,855.29
The dollar sank 0.31 cents to 73.04 cents U.S.
Brokerage RBC downgraded its rating on Canadian oil and gas royalty firm Freehold Royalties to "sector perform" from "outperform", while Canaccord Genuity upgraded civil contractor North American Construction to "buy" from "hold".
Freehold stock prices shrank 13 cents to $16.95, while those for North American ballooned 97 cents, or 5.9%, to $17.47.
On the economic calendar, employment declined by 84,000 (-0.4%) in. The unemployment rate increased 0.2 percentage points to 6.7%.
Statistics Canada also says Manufacturing sales declined 3.0% in January, driven primarily by reduced sales in the transportation equipment and machinery subsectors. Meanwhile, sales in the miscellaneous manufacturing subsector posted the largest increase.
ON BAYSTREET
The TSX Venture Exchange eased 1.5 points to 1,045.55.
All but two of the 12 TSX subgroups improved, led by utilities and consumer staples, each up 1.1%, while real-estate climbed 0.9%.
The two laggards proved to be gold, down 2.6%, and materials, falling 1.9%.
ON WALLSTREET
Stocks rose on Friday, while oil prices pulled back as investors awaited further developments in the Iran war.
The Dow Jones Industrials changed direction and moved ahead 200.02 points to open Friday at 46,878.47.
The S&P 500 index regained 20.22 points to 6,692.84.
The NASDAQ prospered 43.92 points to 22,355.90.
The S&P 500 is tracking for losses on the week with a 0.3% decline. That puts it on pace to see its first three-week losing streak in about a year. The 30-stock Dow is heading for a 1.1% slide, while the tech-heavy Nasdaq has risen 0.3% week to date.
The recent rally in oil prices reversed course on Friday. West Texas Intermediate crude futures retreated 1% to around $94 per barrel, while Brent futures moved lower by 0.5% to $99 a barrel. Brent had closed above $100 for the first time since August 2022 on Thursday.
Stocks are coming off a losing session as oil spiked in the previous session after Iran’s new Supreme Leader Mojtaba Khamenei said that the Strait of Hormuz, a critical route, should remain shut as a “tool to pressure the enemy.” Traffic in the Strait has virtually been halted since the U.S. and Israel launched strikes on Iran at the end of February, leaving investors anxiously awaiting progress on that front.
On Friday, Defense Secretary Pete Hegseth dismissed concerns that the passageway’s closure in the wake of the war breaking out would remain a problem, saying during a press briefing at the Pentagon, “We have been dealing with it, and don’t need to worry about it.”
Investors are weighing the latest data from the Fed’s preferred inflation gauge as well. The personal consumption expenditures price index rose 0.3% in January, coming in line with expectations. Year over year, the headline reading showed an increase of 2.8%, which was slightly below the 2.9% economists polled by Dow Jones had called for.
Core PCE, which excludes energy and food prices, came in as expected at 0.4% for the month and 3.1% from a year earlier.
However, economic growth in the fourth quarter of 2025 was much slower than expected, as gross domestic product rose at annual rate of 0.7% in the period. That revision was down significantly from the prior estimate of 1.4% and well below the Dow Jones forecast for 1.5%.
Prices for the 10-year Treasury gained slightly, lowering yields to 4.25% from Thursday’s 4.26%. Treasury prices and yields move in opposite directions.
Oil prices slid $1.60 to $94.13 U.S. a barrel.
Gold prices dumped $35.00 to $5,090.80 U.S. an ounce.
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