S&P/TSX Rises Amid Energy Strength While Market Eyes Tomorrow's Employment Reports

Canadian stocks extended gains on Thursday as the benchmark index climbed toward the 32,378 level, reflecting broad market momentum across most sectors. The S&P/TSX Composite Index settled at 32,378.64, representing a 243.15-point advance or 0.76% appreciation for the session. Energy equities led the charge, buoyed by firming crude oil prices, with nine of eleven market segments posting advances.

Trade Figures Reveal Shifting Dynamics

Statistics Canada released October trade data showing a notable swing in the country’s external accounts. The nation recorded a C$583 million trade deficit last month, a sharp reversal from the C$243 million surplus logged in September. The shift stemmed from imports accelerating 3.4% while exports grew more modestly at 2.1%. The bilateral trade picture with the U.S. proved particularly significant, as Canadian exports to the south fell 3.4% against a 5.3% surge in imports. Consequently, the trade surplus with the United States contracted substantially from C$8.4 billion in September to C$4.8 billion in October.

Employment Data on Horizon

Markets are positioned to digest December employment statistics from both countries tomorrow, with economists suggesting these figures will prove crucial for central bank policy deliberations. The data releases could signal the direction of interest rate decisions at both the Federal Reserve and Bank of Canada.

Energy Sector Outperformance Gains Traction

The energy complex dominated Thursday’s trading with a 1.89% sectoral gain, reflecting global supply considerations and demand dynamics. Prime Minister Mark Carney has emphasized that Canadian oil resources maintain competitive advantages, citing their lower carbon intensity relative to alternative sources. With the U.S. representing the largest market for Canadian petroleum exports, strategic positioning remains critical for domestic producers. Industry observers note that Carney’s current engagement with Chinese counterparts presents potential opportunities to broaden market access beyond traditional North American channels.

Trade friction persists as domestic enterprises contend with elevated tariff barriers. Following stalled trade negotiations, the government is pursuing trade diversification strategies to reduce concentration risk among trading partners ahead of the renewal of the continental trade framework.

Broader Market Sectoral Performance

Beyond energy’s leadership, industrials advanced 1.34%, real estate climbed 0.99%, and consumer discretionary rose 0.98%. Conversely, financials retreated 0.43%, while communication services, utilities, and IT sectors posted minimal losses.

Notable Price Movement

Among individual securities, energy-focused names delivered the strongest returns: Baytex Energy jumped 6.98%, Vermillion Energy appreciated 3.97%, and Cenovus Energy gained 3.42%. Transportation and industrials also attracted buyers, with Cargojet surging 7.49% and 5N Plus climbing 7.14%. MDA Ltd (6.56%) and Pet Valu Holdings (2.67%) extended gains from earlier trading.

On the downside, DeFinity Financial dropped 2.00%, Power Corp of Canada declined 1.92%, Quebecor fell 2.00%, and Dye & Durham experienced a steeper 10.13% correction.