FX.co ★ Canadian Market Up Firmly On Strong Economic Data; TSX Posts New High

The Canadian stock market reached a new all-time high on Friday morning, driven by robust performances in the technology, consumer discretionary, materials, financials, and energy sectors.

Positive data, including an encouraging reading of Canada's Ivey Purchasing Managers Index for September and improved U.S. employment figures, contributed to the optimistic atmosphere.

The benchmark S&P/TSX Composite Index, which briefly ascended to 24,165.17 earlier in the day, increased by 175.07 points or 0.73%, standing at 24,143.57, just past the midday mark.

Shares of SilverCrest Metals Inc. (SIL.TO) surged nearly 12%. This significant rise follows the announcement that Coeur Mining, Inc. (NYSE: CDE) and SilverCrest Metals Inc. have reached a definitive agreement. Under this agreement, a wholly-owned subsidiary of Coeur will acquire all outstanding shares of SilverCrest according to a court-approved plan of arrangement.

Other notable gains include Propel Holdings (PRL.TO), Celestica Inc. (CLS.TO), MTY Food Group (MTY.TO), Shopify Inc. (SHOP.TO), Cameco Corporation (CCO.TO), Docebo Inc. (DCBO.TO), Tourmaline Oil Corp. (TOU.TO), and Bombardier Inc. (BBD.B.TO), with increases ranging from 2% to 4.7%.

Moderate gains were recorded by Imperial Oil (IMO.TO), Restaurant Brands International (QSR.TO), Kinaxis Inc. (KXS.TO), Descartes Systems Group (DSG.TO), and Royal Bank of Canada (RY.TO), which all rose between 1% and 1.8%.

Conversely, Badger Infrastructure Solutions (BDGI.TO) and Morguard Corporation (MRC.TO) experienced declines of 2.9% and 2.7%, respectively. Thomson Reuters (TRI.TO), Agnico Eagle Mines (AEM.TO), Loblaw Companies (L.TO), Metro Inc. (MRU.TO), and George Weston (WN.TO) also saw notable decreases.

The Ivey Purchasing Managers Index in Canada jumped to 53.1 in September 2024, climbing from an over three-and-a-half-year low of 48.2 in August and significantly surpassing the market's expectations of 50.2. This recent figure indicates a renewed and solid expansion in Canadian economic activity, as the price index fell to a six-month low (58.2 compared to 63.4 in August).

According to the U.S. Labor Department, non-farm payrolls increased by 254,000 jobs in September, following a revised upward gain of 159,000 jobs in August. Economists had initially anticipated an increase of 140,000 jobs compared to the initially reported addition of 142,000 jobs for the prior month.

The report also highlighted a slight decline in the unemployment rate to 4.1% in September from 4.2% in August, whereas economists had predicted the rate would remain unchanged.