Canadian Stocks Rise As Markets Await Jobs Data

(RTTNews) - Canadian stocks posted modest gains on Wednesday with, investors adopting a "wait-and-see" approach as they await upcoming jobs data that guides the monetary policy of the Bank of Canada.

After opening just above yesterday's close, the benchmark S&P/TSX Composite Index fluctuated over the course of the session before closing at 28,751.36 up by 135.74 points (or 0.47%).

Hit by 35% tariffs on all its exports to the US that are not covered by CUSMA, Canadian businesses, especially manufacturing, automobile, steel, and aluminum sectors, are struggling to stay on track.

Canadian Prime Minister Mark Carney is focused on building a stronger economy by cutting reliance on the US for its trade and boosting measures to sign bilateral trade agreements with countries other than the US.

The trade war resulted in sharp economic contraction in the second quarter, with real GDP falling 1.6% on an annualized basis. However, consumer inflation remains relatively low at 1.7% year-over-year in July.

To facilitate smoother trade talks between Canada and the US, Carney recently withdrew retaliatory tariffs imposed on the US, a move which the White House gladly received .

Yesterday, Carney had announced that he will hold a Cabinet Planning Forum from September 3 to 4 in the Greater Toronto Area to discuss fast-tracking nation-building infrastructure projects, building affordable homes, boosting country's defense, and to support sectors affected by US tariffs.

Data released by Statistics Canada today revealed that labor productivity fell 1.0% in the second quarter following a revised 0.1% decrease in the first quarter.

In a significant development last Friday, the US Court of Appeals for the Federal Circuit ruled that US President Donald Trump's imposition of tariffs on trading partners are illegal. However, the court has let the tariffs remain in place for now to allow the administration to appeal the verdict in the US Supreme Court.

With this new roadblock for Trump, new trade uncertainty has surfaced globally.

On the geopolitical front, the three-plus-year long Russia-Ukraine war has been going on without any indication of a truce even with the intervention of Trump. With Russia obstinate about negotiations, the exchange of attacks on each other have intensified from both sides.

Canada's overall inflation rate remains below the Bank of Canada's 2% goal. Hence, the odds of a rate cut at the upcoming September 17 BoC's meeting looks less likely. However, the decision depends on the job and inflation data to be released in the coming days. The prevailing benchmark rate is 2.75%.

Concerns of oversupply pulled down oil prices after recent reports that the OPEC+ alliance is mulling another output increase at their upcoming meeting on Sunday. Its impact was felt today in Canada's energy stocks.

Major sectors that gained in today's trading were Consumer Staples (2.00%), IT (1.43%), Materials (0.83%), and Real Estate (0.77%).

Among the individual stocks, Alimentation Couche-Tard Inc (6.27%), Quarterhill Inc (6.50%), Celestica Inc Sv (5.84%), First Quantum Minerals Ltd (5.74%), and Capstone Mining Corp (4.04%) were the prominent gainers.

Major sectors that lost in today's trading were Utilities (0.58%), Healthcare (1.34%), and Energy (1.73%).

Among the individual stocks, Brookfield Infra Partners LP Units (2.47%), AltaGas Ltd (1.67%), Brookfield Renewable Partners LP (1.57%) Bausch Health Companies Inc (4.16%), and Baytex Energy Corp (4.32%) were the notable losers.