The S&P/TSX Composite Index closed lower on Friday, retreating from a record high as a sharp decline in technology stocks outweighed gains in energy and telecom shares.
The index closed down 29.02 points, or 0.1%, at 36,730.27, with mixed sectors. Energy led gainers, up 0.4%, while Telecom was up 0.3%. Information Technology closed down 2.8%.
In commodities, West Texas Intermediate (WTI) and Brent crude rose on Friday as escalating US-Iran tensions renewed concerns over global oil supplies. Prices were supported by the US threat of a prolonged blockade of Iran and continued disruptions to shipping through the Strait of Hormuz, while attacks on two UAE oil tankers added to supply concerns.
September WTI crude oil contract settled up $1.15, or 1.4%, at $82.40 per barrel, while October Brent oil was last seen up $1.31, or 1.5%, at $88.38 per barrel.
Meanwhile, December Comex gold futures gained 0.3%, or $11.90, to $4,432.30 per ounce.
In currencies, the US dollar edged lower 0.40% against the Canadian dollar, with USD/CAD at 1.3875 at last look.
UBS Investment Research said while it has a neutral view on the Canadian dollar overall, it thinks USD/CAD is more likely to move higher in the near term. With both the Federal Reserve and Bank of Canada likely to keep rates unchanged, the US dollar could get some support, wrote UBS in a Friday note.
On the economic front, Canadian manufacturing and wholesale sales advanced in June. Manufacturing sales rose 0.1% on the month to C$78.8 billion in June, extending the growth streak to five months, with gains in 15 of 21 subsectors led by chemicals and transportation equipment, Statistics Canada said on Friday. June's gain topped the 0.1% month-over-month consensus decline expected in a Bloomberg survey.
Meanwhile, Canadian wholesale sales, excluding oil, oil products, other hydrocarbons, oilseed and grain, rose 2.8% on the month to C$92.5 billion in June, marking a fourth increase in five months, according to the statistical agency. June's increase was broadly in line with a 2.7% monthly consensus gain provided in a Bloomberg survey.
Despite the positive economic data, US trade uncertainty continued to cloud the outlook. The latest US tariff threats, covering around 5% of Canadian exports, will likely weigh on demand for affected goods but will have limited impact on forecasts for the Canadian economy, according to RBC Economics in a note.
Around 0.4% of Canada's gross domestic product and employment would be directly affected, based on 2024 value-added export data, said the bank.