02.07.202614:20:39UTC+00Canadian Stocks Gain as Fed Hike Bets Ease

The S&P/TSX Composite Index inched higher on Thursday, trading just below the 35,000 level as investors digested the latest US payrolls report for clues on the Federal Reserve’s policy trajectory. Softer-than-expected labor data tempered expectations of additional Fed rate hikes this year. At the same time, oil prices extended their decline and hovered around pre-conflict levels, easing inflation worries and bolstering the view that the Bank of Canada could shift to a more dovish stance.

Geopolitical developments also remained in focus after Iran and the United States wrapped up a round of indirect talks in Doha without a clear breakthrough, although fears of supply disruptions in the Strait of Hormuz continued to recede. In equities, financials were mixed, with Brookfield advancing more than 0.5% while TD Bank slipped nearly 1%.

Gold prices edged higher, supporting mining shares: Barrick and Franco-Nevada each gained more than 3%, and WPM added 3.5%. Shopify climbed more than 5% after reaching a settlement with Shopline, a company owned by Joyy.