TSX seen higher on improved global sentiment; retail sales due
Investing.com - Canada’s main stock index is seen trading higher Friday, following the positive lead on Wall Street after the release of cooling U.S. inflation data.
Toronto Stock Exchange’s S&P/TSX composite index closed Thursday 0.6%, or 190 points, higher at 31,440.85, with rising stocks outnumbering declining ones by 499 to 371 and 94 ended unchanged.
Sentiment received a boost Thursday after a softer-than-expected U.S. consumer price index inflation reading for November advanced expectations that the Federal Reserve will cut interest rates further in the coming year.
But analysts warned that the reliability of this data release could be called into question given that it was still affected by some lingering disruptions from the U.S. government shutdown in October.
Goldman Sachs analysts said Thursday’s reading was “unlikely to move the needle” for the Fed, stating that December’s data will be much more significant for policymakers in gauging whether inflation was cooling.
Back in Canada, the highlight of the economic data slate being the monthly retail sales figure for October.
Canadian retail sales have shown volatility in late 2025, with a 0.7% monthly decline in September after an August rebound, driven by lower spending on cars and building materials despite gains in food and general merchandise.
The October release is expected to show flat sales as consumer caution persists due to inflation and trade uncertainty, impacting overall spending power.
Gold prices fell slightly Friday, on track for a mildly positive week, while silver and platinum outperformed and remained close to record highs amid strong safe haven demand.
Broader metal prices also advanced, after softer-than-expected U.S. inflation data spurred bets on more interest rate cuts by the Federal Reserve. Metal prices rose even as the dollar recovered marginally from recent losses.
Spot gold fell 0.1% to $4,326.2 an ounce, while gold futures for February fell 0.2% to $4,355.85/oz.
Spot silver rose 0.5% to $65.8365/oz and was up 6% this week in its fourth consecutive week of gains. Spot platinum rose 0.8% to $1,976.40/oz, and was up 12% this week.
Oil prices were set for a second straight weekly decline, as persistent concerns about a global supply glut, coupled with rising prospects of a Russia-Ukraine peace deal, offset concerns over supply disruptions from a blockade of Venezuelan oil tankers.
Brent futures gained 0.3% to $59.98 a barrel, and U.S. West Texas Intermediate crude futures rose 0.4% to $56.20 a barrel.
Both benchmarks were set to lose over 2% for the week.
Markets have been weighed down by expectations that global oil supply will continue to outpace demand into 2026, with rising output from non-OPEC producers and subdued consumption growth in major economies keeping inventories well supplied.
