Canada’s stock market experienced a slight dip on Friday, setting it up for its first weekly decline in four weeks.

Market Overview

The Toronto Stock Exchange’s S&P/TSX composite index closed at 33,826.92, down 0.3% by 10:01 a.m. ET (1401 GMT). This downturn was primarily driven by the performance of energy stocks, impacted by uncertainty surrounding potential US-Iran negotiations.

Sector Performance

The energy sector (.SPTTEN) fell by 1.3% following a four-session rally. The mining sector (.GSPTTMT) saw modest gains, rising by 0.1% alongside gold and silver prices, though copper price decreases limited further growth. Healthcare stocks (.GSPTTHC) were the strongest performers, increasing by 2%. Overall, six out of eleven TSX sectors ended the day flat or lower.

Geopolitical and Economic Factors

Oil prices decreased following news of Iranian Foreign Minister Abbas Araqchi’s expected visit to Islamabad, but remained above $100 per barrel. The lack of progress towards a resolution in the Middle East significantly impacted investor confidence.

Canadian retail sales increased by 0.7% in February, slightly below initial estimates of 0.9%. Expectations for Bank of Canada (BoC) policy remain fluid, with most economists predicting stable interest rates throughout the year, though market data suggests a growing possibility of a rate hike by the end of 2026.

Analyst Commentary

Angelo Kourkafas, senior global investment strategist at Edward Jones, noted that the TSX’s sensitivity to oil prices has diminished due to expectations of strong corporate profits and a resilient Canadian economy. He cautioned that the BoC may need to reassess its stance if elevated energy prices persist.

Individual Stock Movements & Other News

Sun Life Financial (SLF.TO) increased by 1.7% after receiving an ‘outperform’ rating upgrade from the National Bank of Canada.

The Bank of France recently sold 129 tonnes of US gold and repurchased it in Europe, generating a $15 billion profit, potentially indicating a shift away from dollar-denominated reserves, particularly driven by demand from BRICS+ nations.

Disclaimer: This information is for informational purposes only and should not be considered financial advice.