TORONTO – Canada’s main stock index pushed to a record high Wednesday as the price of oil spiked, while U.S. markets closed down despite trading higher earlier in the day and inflation data coming in lower than expected.
The S&P/TSX composite index closed up 97.85 points at 26,524.16, helped especially by energy stocks, but the day’s gains are also part of a wider trend of investors returning to the Canadian market, said Stephen Duench, portfolio manager at AGF Investments Inc.
“The TSX just keeps on trudging higher, and I think the secret’s out that Canada is investable again,” he said.
“If you actually look at the breadth of what’s working in the TSX, you know, if you really look under the hood within Canada, the stock market has been extremely healthy.”
Progress on tariff talk, including easing tensions between the U.S. and China, as well as the lower inflation data out of the U.S., also helped ease market fears, while Canada is also getting a boost from investors looking to diversify their holdings.
“The world’s equities outside of the U.S. have been basically a structural underweight for the majority of global investors,” said Duench.
“Most investors realize, OK, we’ve actually got to diversify a bit. We’re not going zero with the U.S., but we got diversify and look to other markets.”
While the energy index on the TSX was up 2.2 per cent to help lead gains, technology stocks also gained while financial, industrial and base metal indexes were down.
Dollarama Inc., which announced a jump in profits and beat expectations with its latest results, closed up almost 10 per cent on the day to also boost the market.
In New York, the Dow Jones industrial average was down 1.1 points at 42,865.77. The S&P 500 index was down 16.57 points at 6,022.24, while the Nasdaq composite was down 99.11 points at 19,615.88.
The Canadian dollar traded for 73.18 cents US compared with 73.08 cents US on Tuesday.
The loonie and Canadian market have climbed as investors also see Prime Minister Mark Carney as more pro-business than expected, said Duench.
“He would be very aware of any like, real tough recessionary-type issues bubbling up in Canada, and make sure that he’s taking care of things,” he said.
The July crude oil contract was up US$3.17 at US$68.15 per barrel and the July natural gas contract was down three cents at US$3.51 per mmBTU.
The August gold contract was up 30 cents at US$3,343.70 an ounce and the July copper contract was down nine cents US at US$4.81 a pound.
This report by The Canadian Press was first published June 11, 2025.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
