Canadian Stocks Advance As Carney-Xi Meeting Boosts Sentiment

(RTTNews) - Canadian stocks inched higher on Friday, triggered by positive signs on easing of Canada-China trade friction after the leaders of the two nations discussed bilateral trade relations, with future meetings on the anvil for bettering mutual economic ties.

After opening higher than the previous session's close, the benchmark S&P/TSX Composite Index remained volatile throughout the session before finally closing at 30,260.74, up by 81.76 points (or 0.27%).

Nine of the 11 sectors posted gains today, with the healthcare sector leading the pack.

In a significant development today, on the sidelines of the APEC summit, Canadian Prime Minister Mark Carney and Chinese President Xi Jinping held their first formal talks in eight years. Both leaders are engaged in bettering trade relations and in smoothening out the mutual pain points affecting their economic activities.

Furthermore, Xi invited Carney to visit China, a request which Carney readily accepted. Carney emphasized that constructive and pragmatic dialogue is the proper route to address current issues.

Of note, in July 2025, Canada had announced an additional 25% tariff on steel imports that contain steel melted and poured in China. In retaliation, China announced a temporary duty of 75.8% on Canadian canola imports the next month.

These moves assume importance at a time when Canada is working to diversify its economic ties away from the U.S. after U.S. President Donald Trump slapped the nation's imports to the U.S. with 35% tariffs. High-level talks between the officials of both nations to minimize the trade-related friction are ongoing though.

Canada is working on measures to double non-U.S. exports over the next decade.

Data released by Statistics Canada today revealed that, Canadian GDP expanded by 0.1% from the previous month in September of 2025, reflecting a 0.1% increase in the third quarter, trimming the revised 0.3% contraction in August.

Output from goods producing industries contracted by 0.6% while output from services fell by 0.1%.

On October 29, the Bank of Canada lowered interest rates for the second consecutive time by bringing the overnight rate to 2.25% with the Bank Rate at 2.5% and the deposit rate at 2.20%.

Similarly, the U.S. Federal Reserve brought the rates down to a range of 3.75% to 4.00%. U.S. Federal Reserve Chair Jerome Powell warned investors not to take another rate cut in December for granted.

The U.S. dollar gained from fading rate cut expectations and as a result, commodity prices softened. Canada's material sector stocks declined as a consequence and weighed on the index.

On the business front, TFI International Inc. (TFII) announced its results for the third quarter of 2025. The transportation and logistics company reported a net income of $84.7 million or $1.02 a share compared to $125.9 million or $1.48 a share in the previous year. Analysts estimated earnings of $1.2 per share for the quarter.

Major sectors that gained in today's trading were Healthcare (2.91%), IT (1.10%), Consumer Staples (1.04%), and Real Estate (0.75%).

Among the individual stocks, Sangoma Technologies (6.50%), Sylogist Ltd (5.80%), Quarterhill Inc (4.81%), Bausch Health Companies Inc (6.81%), and Jamieson Wellness Inc (3.48%) were the prominent gainers.

Major sectors that lost in today's trading were Energy (0.50%), Industrials (0.33%), Utilities (0.10%), Communication Services (0.24%), and Materials (0.67%).

Among the individual stocks, B2Gold Corp (9.97%), Perpetua Resources Corp (4.51%), Aya Gold and Silver Inc (3.12%), Mda Ltd (5.39%), and Topaz Energy Corp (0.40%) were the notable losers.

Methanex Corp (16.43%), Toromont Ind (7.02%), and Baytex Energy Corp (6.94%) were among the prime market-moving stocks today.