Canadian Stocks Supported By Decent Trade Data

(RTTNews) - Canadian stocks showed a strong move to the upside during trading on Thursday to set new record highs.

After opening higher than yesterday's record close, the benchmark S&P/TSX Composite Index today moved upwards to reach an intraday high of 27,039.30 less than an hour past noon.

Continuing the momentum, it closed at a new high of 27,034.26, up by 164.60 (or 0.61%).

Notably, yesterday the index closed at a new record high of 25,869.66.

Internally, data provided by Statistics Canada revealed that Canada's trade deficits narrowed in May. Imports declined by 1.6%, while exports to non-US countries increased by 5.7%. Exports to the US fell for the fourth straight month, recording a drop of 0.9%, due to the trade war.

With the July 9 deadline set by the US President Donald Trump nearing, investors were optimistic about a deal between the two nations. Adding to the confidence was Trump's announcement of a successful trade agreement between the US and Vietnam. Canadians hope that PM Mark Carney's government would find ways to strike an accord with the US.

In a related development, after a hiatus of two years brought on by bilateral tensions, a formal delegation of Canadian CEOs are visiting India this year-end to strengthen bilateral commercial ties.

On the external front, the US jobs data today revealed a surprisingly strong payroll number with an increase of 1,47,000, well-above estimates. While the unemployment rate edged down to 4.1% in June, Initial Jobless Claims eased by 4,000 from the prior week to 233,000 for the period ending June 28.

US Federal Reserve's Chair Jerome Powell has indicated a "wait-and-watch" approach with interest rate cuts. Investors feel that today's US jobs data could take the pressure off of Fed from moving their calendar up, before September.

Trump has openly urged the Fed to slash interest rates. He has expressed his displeasure with the current Fed Chair and even indicated a replacement sooner.

President Trump's "Big, Beautiful Bill" passed a final vote today in the House of Representatives and is heading for President's desk for his signature, just in time for Trump's self-imposed July 4 deadline. This multi-trillion-dollar tax and spending bill is projected to add $3.3 trillion to the already swollen US national debt.

Analysts feel that the decision by Fed in the coming weeks and the upcoming trade deals could decide the US Dollar value as well as the direction of global markets.

Lower interest rates could cut down on the borrowing costs and kick off a stable trade environment.

IT (1.60%) and Consumer Staples (1.10%) were the major sectors that gained in today's trading.

Financials (0.81%), Materials (0.57%), Industrials (0.40%), Utilities (0.24%), Communication Services (0.22%), Real Estate (0.20%), and Consumer Discretionary (0.11%) were the other sectors that added up gains today.

Among the individual stocks, Tecsys Inc (4.57%), Celestica (3.62%), Metro Inc (1.67%), and George Weston (1.50%) were the prominent gainers.

Healthcare (1.73%) and Energy (0.38%) were the major sectors that lost in today's trading.

Among the individual stocks, Nuvista Energy (2.29%), International Petroleum (2.10%), Bausch Health (2.28%), and Sienna Senior (1.37%) were the notable losers.

Cargojet Inc (8.51%), Ces Energy Solutions (4.29%), and Terravest Capital (3.74%) were the market moving high gainers.