CANADA STOCKS-TSX posts biggest weekly gain since November as economy adds jobs

By Fergal Smith

Jan 9 (Reuters) - Canada's main stock index rose to a record high on Friday as commodity prices climbed and domestic employment data reassured investors that the economy is holding up ahead of the review of a continental trade pact this year.

The S&P/TSX Composite Index .GSPTSE ended up 234.29 points, or 0.7%, at 32,612.93, surpassing Tuesday's record closing high. For the week, the index added 2.3%, its biggest weekly gain in six weeks.

Canada's job growth slowed in December, with the economy creating just 8,200 new jobs after three months of hiring surges. The unemployment rate rose to 6.8% from 6.5% in November. Analysts had expected a loss of 5,000 positions and a jobless rate of 6.6%.

"With everything going on, unemployment is up somewhat but the economy is OK," said Lorne Steinberg, president at Lorne Steinberg Wealth Management Inc.

"We have of course the U.S. trade agreement (review) coming up and the biggest positive for me is that the U.S. auto makers are lobbying the U.S. government aggressively to keep free trade."

The United States-Mexico-Canada Agreement, which has shielded much of Canada's exports from U.S. tariffs, is up for joint review in 2026. Major automakers have urged the Trump administration to extend the free-trade deal they call crucial to American auto production.

"Gold and metals are on fire," Steinberg said. "A little bit is (down to) the ongoing geopolitical uncertainty but a chunk of it is the weakness of the U.S. dollar."

The U.S. dollar has rallied in recent days against a basket of major currencies but was down 9.4% in 2025, its biggest decline in eight years.

The materials group .GSPTTMT, which includes metal mining shares, rose 1.8% as the price of gold XAU= moved closer to a record high.

Oil CLc1 also increased, settling 2.35% higher at $59.12 a barrel, on growing supply worries linked to intensifying protests in oil-producing Iran.

Energy .SPTTEN added 1.9%, clawing back some of this week's decline. Investors have worried that a boost in Venezuelan oil exports to the United States could hurt Canadian companies that sell a similar heavy oil.

Apparel retailer Aritzia ATZ.TO also posted strong gains. Its shares rose 5% to notch a record high after quarterly results beat estimates.