By Fergal Smith
Canada's main stock index rose on Friday as higher gold prices boosted metal mining shares, but gains for the index were kept in check as investors worried about the inflationary impact of the AI boom.
The Toronto Stock Exchange's S&P/TSX Composite Index TSX:TSX ended up 129.79 points, or 0.4%, at 34,980.00. For the week, the index added 0.4%.
Wall Street ended mixed as Apple said it could no longer shield customers from soaring memory and storage chip costs.
"Just as concerns over the oil shock are fading, the cost pressures from the ongoing AI boom have leapt to the forefront," Douglas Porter, chief economist at BMO Capital Markets, said in a note.
The materials sector TSX:TTMT, which includes metal miners, was up 1%. It was the second straight day of gains for the sector after it traded near the bottom of its range this year on Wednesday.
The price of gold TVC:GOLD rose 1% as the U.S. dollar gave back some of its recent gains.
Canada and Japan are working on a range of mining projects, including potential joint stockpiling, Canada's trade minister told Reuters, as Japan moves to diversify supplies of critical minerals and reduce dependence on China.
Technology added 1.2%, with shares of e-commerce company Shopify Inc NASDAQ:SHOP adding 4.6%.
Industrials (.GSPTTIN) were up 0.7%, while real estate (.GSPTTRE) ended 1.6% higher.
The two most heavily weighted sectors edged lower. Financials lost 0.2% and energy TSX:TTEN was down 0.3%.
The price of oil NYMEX:CL1! settled 3.7% lower at $69.23 a barrel, adding to its steep weekly decline, as as oil tankers kept exiting the Strait of Hormuz, easing supply concerns.
The TSX was headed for a 6.8% gain in the second quarter, which would be its eighth straight quarterly advance.
Domestic data was downbeat, with a preliminary report showing that wholesale trade fell 0.7% in May from April.