Canada's main stock index, the S&P/TSX composite, closed up 20.35 points at 22,244.02 on July 4, reaching its highest closing level since May 31 [9513946d]. The increase was driven by gains in resource shares, particularly in the materials group, which includes precious and base metals miners and fertilizer companies. The materials group was up 0.2%, adding to its 3.4% gain on Wednesday, which was its biggest advance this year [9513946d]. Energy stocks also contributed to the TSX's gains, rising 0.3% as the price of oil increased 0.2% to $84.06 a barrel, approaching its highest level in more than two months [9513946d].
The S&P/TSX composite index rose 20.35 points to 22,244.02 on July 4, driven by strength in the telecommunications, utilities, and energy sectors [05b2b4ee]. The increase came as U.S. stock markets were closed for the July 4 holiday [05b2b4ee].
Investors are eagerly awaiting the release of fresh jobs numbers in both the U.S. and Canada on Friday. Recent signs of a slowdown in the U.S. economy have led to increased bets that the U.S. Federal Reserve will cut interest rates as soon as September. The Bank of Canada has already begun its easing cycle, lowering its benchmark rate by 25 basis points to 4.75% last month. Depending on the jobs report, the Bank of Canada could cut interest rates for a second time this month [9513946d]. Economists expect the U.S. economy to have added about 190,000 jobs in June. The U.S. Federal Reserve is considering cutting its key interest rate, with September seen as a real possibility. The central bank is looking for further evidence that inflation is moving sustainably toward its 2% target [05b2b4ee].
The Canadian dollar traded for 73.46 cents US compared with 73.33 cents US on Wednesday [2e857531]. On the currency market, the Canadian dollar was trading at 73.46 US cents [05b2b4ee]. Commodity markets were closed for regular trading on July 4 [2e857531].
Shares of a consumer lending company slid 9.9% after the company announced that its chief executive officer, Jason Mullins, will transition out of his role at year-end [9513946d].
Investors are looking ahead to Friday for new employment data from the United States and Canada, which could have implications for interest rate cuts in both countries. In Canada, signs of a slowing economy are mounting, and the Bank of Canada recently announced its first interest rate cut in years. The central bank could cut its benchmark rate a second time this month depending on the jobs report [05b2b4ee].