Canada's main stock index, the TSX Composite, closed Friday with modest gains, ending the day at 36,176.55 after adding 39.45 points. This marked a weekly gain of 512 points, or 1.44%. The Canadian dollar also strengthened, rising 0.28 cents to 70.73 cents U.S.
Bank of Canada Governor Tiff Macklem warned that persistent energy-price pressures could complicate future interest rate decisions. While no rate hike is expected at the next meeting on October 28, markets are pricing in a 25-basis-point increase in December.
Among individual stocks, Strathcona Resources and IPCO led gains in the energy sector, while consumer staples like Alimentation Couche-Tard and Metro also saw increases. However, tech stocks weighed down the market, with BlackBerry and Shopify posting significant declines.
On the economic front, the Canadian Real Estate Association reported a 2.3% month-over-month drop in home sales for September. Meanwhile, housing starts exceeded expectations at 248,896, compared to 220,000 forecasted. Foreign investors reduced their holdings of Canadian securities by $17.3 billion, primarily divesting from federal government debt instruments.