Canada's S&P/TSX Composite Index Reaches New Record Closing High

(RTTNews) - After moving mostly higher over the course of the two previous sessions, Canadian stocks saw further upside during trading on Friday.

The S&P/TSX Composite Index climbed 113.69 points or 0.5 percent to 21,455.82, ending the session at a new record closing high.

The continued upward move partly reflected a positive reaction to a Labor Department report showing stronger than expected U.S. job growth in the month of October.

The report said non-farm payroll employment surged up by 531,000 jobs in October after climbing by an upwardly revised 312,000 jobs in September.

Economists had expected employment to jump by 425,000 jobs compared to the addition of 194,000 jobs originally reported for the previous month.

With employment increasing by more than expected, the unemployment rate fell to 4.6 percent in October from 4.8 percent in September, hitting its lowest level since March of 2020. The unemployment rate was expected to edge down to 4.7 percent.

The Labor Department described the job growth as widespread, with notable job gains in leisure and hospitality, professional and business services, manufacturing, and transportation and warehousing.

The upbeat jobs data added to optimism about the outlook for the economy despite lingering concerns about supply chain issues and rising inflation.

Meanwhile, Statistics Canada released a report showing Canadian employment held steady in October after returning to pre-pandemic levels in September, inching up by 31,000 jobs.

The report showed the unemployment rate fell to a 20-month low of 6.7 percent in October from 6.9 percent in September, falling within 1 percentage point of the 5.7 percent seen in February of 2020.

Statistics Canada said job growth in a number of industries, including retail trade, was offset by declines elsewhere, including in accommodation and food services.

Energy stocks showed a substantial move to the upside on the day, driving the S&P/TSX Capped Energy Index up by 2.6 percent.

The rally by energy stocks came amid a substantial rebound by the price of crude oil, with crude for December delivery jumping $2.46 or 3.1 percent to $81.27 a barrel after moving sharply lower over the two previous sessions.

Another sharp increase by the price of gold also contributed to significant strength among gold stocks, resulting in a 2.6 percent jump by the S&P/TSX Global Gold Index.

Meanwhile, healthcare stocks bucked the uptrend on the day, dragging the S&P/TSX Capped Health Care Index down by 1.4 percent.