Canada Stocks: TSX posts biggest gain in five weeks as rate hike bets recede

BCE

09/10/2026 21:46

Updates to close
By Fergal Smith
TORONTO, Oct 9 (Reuters) - Canada's main stock index rose on Friday by the most in five weeks, led by gains for Aritzia and metal mining shares, as weaker-than-expected domestic jobs data reduced expectations for Bank of Canada interest rate hikes.
The Toronto Stock Exchange's S&P/TSX Composite Index .GSPTSE ended up 519.24 points, or 1.48%, at 35,664.62, marking its highest closing level in two weeks and its biggest advance since September 3.
For the week, the index added 0.46% after two straight weeks of declines.
"Markets didn't want to end three weeks down in a row." said Ben Jang, a portfolio manager at Nicola Wealth. "It's the same story - bad news for the economy, good news for valuations."
Canada's economy shed 68,300 jobs in September and the unemployment rate edged up to 6.5%. Analysts had forecast a jobs gain of 9,200.
"The market has been quite hawkish and pricing in hikes which now, with such a weak job number, likely means a pause in that process," Jang said.
Investors see a 25% chance the BoC would hike at the October 28 policy announcement, down from 40% before the jobs report. 0#CADIRPR
Lower interest rates increase the value to investors of the cash flows companies are expected to earn.
The materials sector .GSPTTMT, which includes metal mining shares, rose 2.81% as bargain buying emerged for gold after bullion touched a two-month low earlier this week.
Energy .SPTTEN was up 1.07% as oil recouped its earlier declines. US crude oil futures CLc1 settled 0.4% higher at $91.85 a barrel.
Shares of Aritzia ATZ.TO surged more than 20% after the apparel retailer topped analyst expectations for second-quarter revenue and profit. That helped lift the consumer discretionary sector .GSPTTCD by 2.66%.
Technology .SPTTTK rose 2.88% and heavily weighted financials ended 1.21% higher.
Communication services stocks were a drag, with Cogeco Communications CCA.TO falling 7.11% and BCE BCE.TO down 5.47%.
US and European telecom stocks also tumbled after SpaceX's acquisition of low-band spectrum heightened concerns over growing competition from satellite-based mobile services.

 (Reporting by Fergal Smith in Toronto and Avinash P in Bengaluru; Editing by Jonathan Ananda, Shailesh Kuber and David Gregorio)
 ((fergal.smith@thomsonreuters.com; +1 647 480 7446))