WASHINGTON (dpa-AFX) - Canadian stocks posted incremental gains on Friday to scale a new peak, as investors assessed the benefits of Canada-China trade deals following Prime Minister Mark Carney's four-day visit to foster ties in trade, agriculture, and international security.
In addition, an increase in crude oil prices lifted energy sector stocks, which offset losses in mining stocks.
After opening just a little above yesterday's close, today the benchmark S&P/TSX Composite Index remained volatile throughout the session before settling at 33,040.55, up by 11.63 points (or 0.04%).
Notably this is a new record high for the index today, which gained around 1.3% for the week.
Five of the 11 sectors posted gains today, with the energy sector leading the pack.
Canada-China trade relations have soured in the past several months with each slapping tariff and counter-tariffs on the other. Canadian traders anticipated Carney would reset the ties and resurrect the affected industries.
In agriculture alone, China is a $4 billion canola seed market for Canada.
Today, after meeting Chinese President Xi Jinping during his four-day visit to China, both the leaders announced that China will lower the levies on Canola oil from Canada to 15% (currently 85%) by March 1, while Canada agreed to import around 49,000 electric vehicles from China at a reduced tariff of 6.1%, thereby rendering the 'most-favored nation' status to China.
Both nations have signed multiple deals on trade and energy sectors, with China agreeing to grant visa-free access to Canadian visitors.
Carney stated that the negotiations in China have been 'realistic and helpful.'
Recently, Canada's biggest trading partner, the U.S., has turned adverse on Canada, with U.S. President Donald Trump slapping 35% tariffs on Canadian imports into the U.S.
After ending all trade talks with Canada, Trump also indicated that the U.S. may withdraw from the Canada-United States-Mexico Agreement (or CUSMA), a tripartite deal which is up for renewal a few months from now.
On Tuesday, while visiting a Ford Motor plant in Michigan, Trump stated that Canada wanted the CUSMA while it offered no real advantage to the U.S. and termed it 'irrelevant.'
However, Detroit's Big Three automakers, Ford, GM, and Stellantis, have urged Trump to extend the CUSMA as they lean heavily on supply chains through Canada and Mexico for parts.
In a related development, the U.S. Supreme Court has postponed issuing a decision on the legality of Trump's tariff imposition without announcing a future date for announcement. Hence, the uncertainty on trade levies continues to linger.
Challenged with the need to diversify away from the U.S. without hurting Trump, Carney is heading to Qatar from China, and then to Switzerland to attend the World Economic Forum.
In Canada today, data released by Canada Mortgage and Housing Corporation revealed that housing starts rose by 11% from the previous month to a seasonally adjusted 282,439 in December 2025.
In Iran, since December, a confrontation between protestors against the government and security agencies led to widespread clashes and deaths of hundreds of innocents. Trump prepared U.S. forces to intervene to bring back peace in Iran.
Concerns about oil supply disruptions via the Strait of Hormuz pushed up oil prices and consequently Canadian energy sector stocks advanced.
Trump retreated later stating that he received confirmed reports that the 'killings have stopped' in Iran.
However, a Fox News report indicated that the U.S. is ramping up its forces in the Middle East, keeping the risk premium alive.
The increase in energy stocks balanced the losses in mining stocks due to the decline in gold prices today.
Major sectors that gained in today's trading were Energy (0.94%), Industrials (0.87%), Real Estate (0.62%), and Utilities (0.24%).
Among the individual stocks, Headwater Exploration Inc (3.70%), Prairiesky Royalty Ltd (2.85%), Mda Ltd (14.52%), and Granite Real Estate Inc (2.76%) were the prominent gainers.
Major sectors that lost in today's trading were Materials (0.48%), IT (1.16%), Consumer Discretionary (1.25%), and Healthcare (1.28%).
Among the individual stocks, Bausch Health Companies Inc (3.76%), Magna International Inc (2.73%), Dye & Durham Ltd (10.13%), and Blackline Safety Corp (6.47%) were the notable losers.
Silvercorp Metals Inc (10.92%) and Discovery Silver Corp (7.04%) were among the prime market-moving stocks today.
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