S&P/TSX Composite Drops 67.61 Points to 35,806.65
The Canadian equity market closed lower on Friday, capping a week of mixed signals. The S&P/TSX composite index lost 67.61 points to settle at 35,806.65. Broad-based losses drove the decline despite recent government investment announcements.
The S&P/TSX composite index fell 67.61 points on Friday. The benchmark closed at 35,806.65. This decline marked the end of a volatile week for Canadian equities. Investors weighed recent political news against global economic data.
Prime Minister Mark Carney concluded a two-day investment summit in Toronto. The event featured multi-billion-dollar funding announcements. Ottawa aims to attract one trillion dollars in investment over five years. A new productivity tax credit was also announced during the summit.
Inflation data shapes rate outlook
Statistics Canada reported that inflation held steady at three percent in August. This data reduces the likelihood of a near-term rate hike. The Bank of Canada currently holds its key policy rate at 2.25 percent. Officials noted that new tariffs have increased uncertainty for economic growth.
Market participants are watching for signals from Bank of Canada Governor Tiff Macklem. He is scheduled to speak in Halifax next week. Analysts expect the governor to remain cautious. A significant catalyst is needed before the central bank moves its policy rate.
Federal Reserve actions impact global markets
The U.S. Federal Reserve raised its benchmark interest rate on Wednesday. This was the first increase since 2023. The move aimed to combat stubbornly high inflation. Shares initially dropped before recovering partially the following day.
Federal Reserve Chair Kevin Warsh left the door open for further hikes. The Fed signaled a potential second increase to 4.1 percent. This stance has raised speculation about parallel moves by the Bank of Canada. Higher borrowing costs in the U.S. remain a headwind for global assets.
Currency and commodity prices shift
The Canadian dollar traded at 71.42 cents US. This was a decline from 71.49 cents US on Thursday. The November crude oil contract fell by 1.15 dollars US. It settled at 96.08 dollars US per barrel.
The December gold contract rose by 25.20 dollars US. The metal finished at 4,424.90 dollars US per ounce. In New York, the Dow Jones industrial average dropped 95.40 points. The S&P 500 index gained 12.74 points, while the Nasdaq composite rose 104.25 points.
