TORONTO 鈥� Canada's main stock index edged higher Thursday, as strength in base metal stocks helped outweigh weakness in telecom and utilities.
The S&P/TSX composite index closed up 21.68 points at 25,073.36.
Canadian markets were quiet as U.S. trading was paused Thursday in observance of a national day of mourning for former president Jimmy Carter.
Investors will get updates on the labour market in both Canada and the U.S. on Friday.
鈥淭he jobs will be the first big piece of data for us to see, take a look at and parse through in 2025,鈥� said Allan Small, senior investment advisor at iA Private Wealth.
Investors are sensitive to any data that might point toward inflation heating back up in the U.S., said Small, or that could quell chances of further interest rate cuts.
鈥�(The) jobs data will go a long way to telling everybody how things are faring,鈥� he said.
鈥淚f it's a very strong jobs number, that will not bode well for interest rate cuts this year.鈥�
Other U.S. economic data this week was mixed, said Small, with some reports coming in hotter than expected on services inflation and jobs.
Next week will bring more data on inflation in the U.S. ahead of president-elect Donald Trump鈥檚 inauguration Jan. 20, and then interest rate decisions on both sides of the border the following week.
Canada鈥檚 economy, including its labour market, has lagged behind that of the U.S., with the divergence in economic data and interest rate policy expected to continue in 2025 and weighing on the loonie.
In November the unemployment rate ticked up to 6.8 per cent, the highest rate since January 2017 outside of the COVID-19 pandemic.
Small expects more of the same for December.
鈥淚 think the Bank of Canada鈥檚 hands are tied,鈥� he said, adding despite the slower economic data in Canada, if rates between the two countries continue diverging that will mean an even weaker loonie and potentially more inflation north of the border.
鈥淚 think the Bank of Canada is in a much tougher position than the Fed,鈥� he said.
The Canadian dollar traded for 69.47 cents US compared with 69.49 cents US on Wednesday.
The February crude oil contract was up 60 cents at US$73.92 per barrel and the February natural gas contract was up five cents at US$3.70 per mmBTU.
The February gold contract was up US$18.40 at US$2,690.80 an ounce and the March copper contract was up five cents at US$4.31 a pound.
鈥� With files from The Associated Press
This report by The Canadian Press was first published Jan. 9, 2025.
Companies in this story: (TSX:GSPTSE, TSX:CADUS
Rosa Saba, The Canadian Press
