CANADA STOCKS-TSX posts record closing high as investors cheer U.S. jobs data

By Fergal Smith

July 3 (Reuters) - Canada's main stock index rose to a record closing high on Thursday, led by gains for financial and technology shares, as stronger-than-forecast U.S. employment data added to the high spirits of investors.

The S&P/TSX composite index .GSPTSE ended up 164.60 points, or 0.6%, at 27,034.26, eclipsing the record close on Wednesday. Year-to-date the index has gained 9.3%.

"This is a market that is being driven by exuberance," said Michael Sprung, president at Sprung Investment Management. "It seems to be looking for any excuse for good news and I'm not so certain that the good news is likely to continue."

U.S. job growth was unexpectedly solid in June, but nearly half of the increase in nonfarm payrolls came from the government sector, with private industry gains the smallest in eight months as businesses battled rising economic headwinds.

Those headwinds have included uncertain U.S. trade policy. About 100 countries are likely to see a reciprocal tariff rate of 10%, U.S. Treasury Secretary Scott Bessent said, adding that he expects "a flurry" of trade deals announced before a July 9 deadline that could see tariff rates increase sharply.

Canada's trade deficit narrowed in May after reaching a record-breaking level in April, as exports rose and imports fell even as the impact of U.S. tariffs dented shipments south of the border.

Technology rose 1.6%, with e-commerce company Shopify Inc SHOP.TO adding 2.1%.

Heavily weighted financials were up 0.8% and consumer staples climbed 1.1%.

Cargojet Inc CJT.TO was a standout. Its shares rose 8.5% after the company extended its air transportation services agreement with Amazon.

Just two of the 10 major sectors ended lower, including energy. Energy fell 0.4% as the price of oil CLc1 settled 0.7% lower at $67.00 a barrel.