Canada's main stock index, the TSX Composite, opened higher on Friday, driven by gains in energy shares. The index surged 552.64 points, or 1.6%, to reach 36,137.10. The Canadian dollar also saw a slight increase, rising 0.24 cents to 70.59 cents U.S.
Bank of Canada Governor Tiff Macklem warned about the persistent pressure of elevated energy prices on interest rates. While the BoC is not expected to raise rates at its next meeting on October 28, money markets are pricing in a 25 basis point hike in December.
On the economic front, the Canadian Real Estate Association reported a 2.3% month-over-month decline in home sales in September. Meanwhile, housing starts came in at 248,896, exceeding expectations of 220,000. Canadian investors acquired $23.9 billion of foreign securities in August, primarily U.S. shares, while foreign investors reduced their holdings of Canadian securities by $17.3 billion.
In the U.S., stocks were mixed as traders wrapped up a mostly losing week. The Dow Jones Industrial index leaped 229.76 points to 52,407.45, while the S&P 500 and NASDAQ saw declines. Chipmakers struggled amid concerns about competition from China, and the S&P 500 is on pace for a losing week. Tesla shares rose 1% after unveiling its next-generation roadster, set for production in 2028.