Canadian Stocks Edge Upward, Miners Boost S&P/TSX Despite Hot U.S. Data
Copper prices fuel mining gains on the S&P/TSX index, while hotter-than-expected U.S. producer prices dampen tech stocks. Get the latest on Air Canada, Fairfax Financial, and more.
The S&P/TSX Composite index closed out the week with a modest 0.1% gain, reaching the 21,225 mark on Friday. Canadian mining stocks provided a significant lift, while ongoing earnings reports and hotter-than-expected U.S. economic data created a mixed picture for investors.
Material Gains Fuel Index Growth
Rising copper prices propelled the materials sector upward, offering some counterbalance to the U.S. producer price index (PPI) report. The PPI data exceeded expectations, suggesting that inflation may be stickier than anticipated. This news tempered hopes of an early end to interest rate hikes and weighed on technology stocks in particular.
Mining giants Ero Copper and Lundin Mining enjoyed solid gains of 6.2% and 5.3%, respectively, benefiting directly from the copper price surge.
Earnings Reports Influence Individual Stocks
Air Canada experienced a 6.4% decline in its shares after reporting a smaller-than-expected adjusted loss for the previous quarter. While strong international travel demand contributed to the improved loss figures, investors seemed to focus on other metrics.
Fairfax Financial Holdings dipped 1.4% despite beating fourth-quarter profit estimates. Meanwhile, asset manager IGM Financial fell 3.7% following the release of its quarterly results.
Weekly Roundup and Holiday Closure
Despite some daily fluctuations, the Canadian index capped off the week with a respectable 0.8% gain. Investors should note that Canadian markets will be closed on Monday, February 20th, in observance of Family Day.
