Canada Stocks Rise on Energy Strength Ahead of Employment Report

ponzi_poet · 2026-01-12T16:43:48+00:00

Canadian equities rose, led by the energy sector, with the S&P/TSX Composite Index gaining 0.76%. Despite mixed trade data, investors await crucial employment statistics from Canada and the U.S. that may influence monetary policy decisions.

ponzi_poet

2026-01-12 16:43:48

Abstract generation in progress

Canadian equities extended gains on Thursday as energy sector strength supported broader market momentum, while investors kept focus on upcoming employment statistics set to be released Friday in both Canada and the U.S. The S&P/TSX Composite Index climbed to 32,378.64, posting a gain of 243.15 points or 0.76%, after beginning the session in negative territory.

Market Breadth and Sector Performance

Nine of the eleven sectors contributed to the upside, with energy leading the charge. The Energy sector surged 1.89%, followed by Industrials gaining 1.34%, Real Estate climbing 0.99%, and Consumer Discretionary advancing 0.98%. Conversely, four sectors posted modest declines—Financials dropped 0.43%, Communication Services fell 0.41%, while Utilities and IT remained nearly flat with losses of 0.03% and 0.05% respectively.

Individual Stock Movers

Strong performers included Cargojet Inc, which jumped 7.49%, followed by 5N Plus Inc at 7.14%, Baytex Energy Corp at 6.98%, and Mda Ltd at 6.56%. Energy names Vermillion Energy Inc and Cenovus Energy Inc gained 3.97% and 3.42% respectively, while Pet Valu Holdings Ltd added 2.67%.

On the downside, Dye & Durham Ltd led decliners with a 10.13% drop. DeFinity Financial Corporation and Quebecor Inc both lost 2.00%, while Power Corp of Canada retreated 1.92%.

Trade Data Signals Mixed Signals

Statistics Canada released October trade figures showing Canada recorded a C$583 million trade deficit, reversing a C$243 million surplus from September. Imports increased 3.4% while exports rose 2.1%. Trade dynamics with the U.S. shifted notably, with exports declining 3.4% as imports surged 5.3%, causing Canada’s U.S. trade surplus to compress from C$8.4 billion to C$4.8 billion month-over-month.

Focus on Employment Data

Market participants are gearing up for Friday’s release of December employment reports from both the U.S. and Canada, which will offer crucial signals regarding the monetary policy directions likely to be adopted by central banks in both nations. These figures are expected to provide insight into labor market health and influence expectations for interest rate decisions in the coming months.

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