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TSX Hits Record High on Gold Surge
29 Nov
Summary
- The TSX composite index reached a new record closing high on Friday.
- Gold prices rose 1.8% and silver hit a record high, boosting mining shares.
- Canadian annualized GDP grew 2.6% in Q3, surpassing expectations.
The Canadian stock market achieved a new record closing high on Friday, with the S&P/TSX composite index surpassing previous milestones. This upward trend was largely driven by a substantial increase in gold and silver prices, which saw the materials sector, particularly metal mining shares, experience a significant boost. The positive performance contributed to the index's seventh consecutive monthly gain, reflecting sustained market strength.
In parallel, Canada's economy demonstrated resilience, with annualized gross domestic product growing by 2.6% in the third quarter. This growth rate exceeded market expectations, primarily fueled by crude oil exports and government spending, despite a weaker showing in business investments and household consumption. The broader market sentiment was also influenced by rising U.S. stocks and expectations of potential Federal Reserve interest rate cuts.
Looking ahead, the market's focus is shifting towards the upcoming quarterly earnings reports from Canada's major banks. Given the significant weighting of financial stocks on the TSX, these earnings are anticipated to set the tone for future market movements. Analysts are projecting healthy financial results, supported by low reserves and robust net interest margins, further contributing to investor optimism.
