Canadian Stocks End Roughly Flat After GDP Data

(RTTNews) - After moving to the upside early in the session, Canadian stocks gave back ground over the course of the trading day on Friday before ending the day roughly flat.

The benchmark S&P/TSX Composite Index advanced to an intraday high of 29,864.19 in early trading before losing momentum and pulling back near the unchanged line. The index eventually ended the day up by 29.30 points (or 0.10%) at 29,761.28.

Seven of the 11 sectors posted gains today, with the materials sector leading the pack.

On September 17, the Bank of Canada reduced its target for the overnight rate by 25 basis points to 2.5%, with the bank rate at 2.75% and the deposit rate at 2.45%. While making the announcement, the central bank stated that if the risks to the economy increase further, it will be ready to cut rates.

A preliminary estimate released by Statistics Canada today revealed that Canadian real GDP was essentially unchanged from the previous month in August.

Statistics Canada said increases in wholesale and retail trade were offset by decreases in mining, quarrying, and oil and gas extraction, manufacturing, and transportation and warehousing.

The report also said real GDP grew 0.2% in July after edging down 0.1% in June. The first increase in four months was predominantly driven by expansion in the goods-producing industries, Statistics Canada said.

Canadian GDP shrunk in the second quarter by 1.6% annualized. Two consecutive quarters of contraction are technically considered a "recession."

Hence, the July GDP growth figure was closely tracked by economists to get an indication of whether there will be a contraction in the third quarter.

Canada's wholesale sales are expected to decline 1.3% in August 2025, from C$86.0 billion in July, when they rose 1.0%.

In the US Supreme Court, US President Donald Trump's administration is set to battle a lower court verdict that judged the "reciprocal tariffs" as illegal. The hearing commences in November. The duties however remain in place until a final verdict is delivered.

The levies have already hit the Canadian automobile, aluminum, and steel industries.

Yesterday, Trump posted on his social media platform Truth Social that starting October 1, the US will impose a 100% tariff on any branded or patented pharmaceutical product imported to the US.

Expectations of additional rate cuts by the US Federal Reserve (after September 17 lowering) softened after yesterday's US economic and jobs data.

However, today's US Personal Consumption Expenditures index matched market expectations, triggering rate cut bets once again.

With the future of cross-border trade hanging in the balance, to streamline the nation's economy hit hard by 35% US tariffs, Canadian Prime Minister Mark Carney is in London to attend the 2025 Global Progress Action Summit, where he is scheduled to discuss with a number of world leaders (from UK, Australia, Iceland, Spain, and Denmark) along with energy firms and investment bodies to attract investment and strengthen bilateral ties.

Major sectors that gained in today's trading were Materials (1.94%), Utilities (0.59%), Communication Services (0.58%), and Consumer Discretionary (0.36%).

Among the individual stocks, Aya Gold and Silver Inc (13.30%), Blackberry Ltd (6.49%), Iamgold Corp (5.04%), Pan American Silver Corp (4.13%), and Brookfield Infra Partners LP Units (4.91%) were the prominent gainers.

Major sectors that lost in today's trading were Healthcare (0.38%), Industrials (0.43%), Consumer Staples (0.55%), and IT (2.10%).

Among the individual stocks, Nfi Group Inc (5.05%), Cargojet Inc (3.76%), Constellation Software Inc (5.95%), and Bitfarms Ltd (4.56%) were the notable losers.