TORONTO – Canada’s main stock index capped strong gains in June by rising Friday ahead of the holiday weekend.
The S&P/TSX composite index closed up 74.47 points to 16,382.20. Although the index was down nearly one percentage point on the week, it gained 2.2 per cent for the month and 15.2 per cent in the first half of the year.
U.S. markets likewise rose ahead of a meeting at the G20 between U.S. President Donald Trump and Chinese President Xi Jinping.
While some investors hope for positive signals about a resolution to the trade war between the world’s two largest economies, Erik Bregar, head of currency strategy at the Exchange Bank of Canada, is more doubtful.
“I feel like the market might get a whole lot of a nothing burger,” he said in an interview on the last trading day for the month in Canada.
“So long as we don’t get any major negative headlines out of Osaka (Japan), the dollar, gold, treasuries, stocks could kind of open up Monday where we closed out today.”
In New York, the Dow Jones industrial average was up 73.38 points at 26,599.96. The S&P 500 index was up 16.84 points at 2,941.76, while the Nasdaq composite was up 38.49 points at 8,006.24.
U.S. markets outpaced the TSX in June, with one day remaining in the month for U.S. trading.
Markets were up as much as 7.4 per cent for the month and between 15.3 and 21.6 per cent year-to-date.
Expectations of interest rate cuts by central banks in the U.S. and Europe has buoyed markets and caused the U.S. dollar to weaken and gold to strengthen.
“I still think this market is reeling from the big dovish turn from the Fed last week,” Bregar said.