The S&P/TSX Composite Index closed slightly higher on Thursday as gains in information technology, energy and base metals offset weakness in healthcare, while investors assessed fresh Canadian economic data and the Bank of Canada's monetary policy outlook.
The index closed up 20.60 points, or 0.1%, at 36,834.25, hovering below Tuesday's record high. Information Technology led gainers, up 2.7%, while shares in energy and base metals were up 0.8% and 0.6%, respectively. Healthcare led decliners, down 1.5%.
In commodities, West Texas Intermediate (WTI) and Brent crude rose as hopes for a diplomatic breakthrough between the US and Iran faded, renewing concerns over Middle East oil supplies. Prices had fallen earlier on expectations that diplomatic efforts involving Iran, Oman and Qatar could help restore shipping through the crucial Strait of Hormuz.
October WTI crude oil contract settled up $1.30, or 1.6%, at $83.53 per barrel, while October Brent oil was last seen up $2.14, or 2.4%, at $89.98 per barrel.
Meanwhile, December Comex gold futures gained 0.2%, or $9.70, to $4,663.00 per ounce at last look.
In currencies, the US dollar edged down 0.2% against the Canadian dollar, with USD/CAD at 1.3854 at last look.
In economic news, Canada's seasonally adjusted current account swung to a C$8.8 billion surplus in the second quarter from a C$8.3 billion deficit in the prior quarter, marking its first surplus since the second quarter of 2022 and the largest since the last quarter of 2005, according to the country's statistical agency.
The turnaround, which was more than double the Bloomberg survey consensus for a C$3.9 billion surplus, was driven by a sharp improvement in the goods trade balance, as exports surged.
Meanwhile, Canadian payroll employment, measured in the Survey of Employment, Payrolls and Hours, was broadly unchanged in June, edging up by 4,800 on the month following a monthly increase of 45,000 in May, according to StatsCan.
On the monetary policy front, Bank of Canada Governor Tiff Macklem is likely to strike a balanced tone at next Wednesday's rate decision as renewed Canada-US trade tensions pose risks to both economic growth and inflation, according to Nomura.
The bank expects the BoC to hold its policy rate at 2.25%, with contained core inflation, a stabilizing labor market and improving growth giving policymakers room to remain patient.
In stocks, CIBC (CM.TO) and RBC (RY.TO) closed down 2.8% and 1.6%, respectively. Both reported Q3 earnings beats earlier in the day.