By Tharuniyaa Lakshmi and Fergal Smith

Canada's main stock index rose on Friday to a two-week high, as gold and copper prices rose and metal mining shares led broad-based gains after expectations decreased for Federal Reserve interest rate hikes.

The Toronto Stock Exchange's S&P/TSX composite index TSX:TSX ended up 308.17 points, or 0.9%, at 35,274.84, marking the highest closing level since the index posted a record closing high on June 16. For the week, the index added 0.8%.

  • "Weaker U.S. job data reduced expectations of further interest rate hikes," said Matt Manara, executive vice president and portfolio manager at Avenue Investment Management. "Lower rate expectations weaken the U.S. dollar, boost gold and benefit Canadian resource stocks."

  • Investors have dialed back expectations for a near-term rate hike from the Fed after data on Thursday showed that U.S. job growth slowed sharply in June.

  • Nine of 10 major sectors posted gains, including materials TSX:TTMT, which includes metal mining shares. It rose 2.4% as gold TVC:GOLD and copper (HGc1) prices climbed.

  • Energy TSX:TTEN added 0.6% as the price of oil NYMEX:CL1! edged 0.1% higher to $68.78 a barrel.

  • Canada announced on Thursday plans to build a new oil pipeline from Alberta to the Pacific coast, which would give the world's fourth-largest oil producer greater capacity to export to Asia and ease its reliance on the United States.

  • Industrials (.GSPTTIN) were up 0.9%, led by a 3.6% gain for the shares of AtkinsRealis Group Inc TSX:ATRL after the company said it anticipates that Turkey will complete an early review of its CANDU reactors following an information exchange later this summer.

  • Trade-sensitive stocks, such as leisure products company BRP Inc TSX:DOO and auto parts supplier Magna International, rebounded after they posted steep declines on Thursday, which helped lift consumer discretionary (.GSPTTCD) by 0.8%.

  • On Wednesday, the U.S. declined to extend the United States-Mexico-Canada Agreement, as expected, seeking changes to the trade deal.

  • Technology TSX:TTTK rose 0.8% and heavily weighted financials (.SPTTFS) ended 0.4% higher.