Canadian stocks settled lower Friday, led by financial and resource stocks on some disappointing U.S. macroeconomic data and over concerns the Federal Reserve may begin tapering off the quantitative easing program soon. Nonetheless, there were news reports that the Federal Reserve would likely make efforts to soothe concerns over cutting down the monetary easing program.
In some disappointing economic data, U.S. industrial production in May came in unexpectedly unchanged, with a sharp drop in utilities output offset increases in mining and manufacturing output, a U.S. Federal Reserve report showed Friday. Meanwhile, consumer sentiment in the U.S. unexpectedly deteriorated in June, with the consumer sentiment index pulling back off a near six-year high, a Thomson Reuters and University of Michigan report showed.
On a positive note, producer prices in the U.S. rose more than anticipated in May, with growth largely attributed to a notable rebound in energy prices, a Labor Department report said Friday.
Almost all sub-indices of the S&P/TSX Composite Index declined, with the exception of the Capped Utilities Index. The main index had jumped over 1.3 percent yesterday on some upbeat data, while tracking rising global equity markets.
The S&P/TSX Composite Index closed Friday at 12,187.36, down 89.77 points or 0.73 percent. The index touched an intraday high of 12,298.31 and a low of 12,178.21.
The Global Gold Index shed 1.52 percent, although gold futures for August delivery gained $9.80 or 0.7 percent to close at $1,387.60 an ounce Friday on the Nymex.
The Capped Materials Index dropped 1.58 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) shedding 1.08 percent.
Among gold stocks, Yamana Gold Inc. (YRI.TO) slipped 0.70 percent, while Goldcorp Inc. (G.TO) dropped 2.46 percent. IAMGOLD Corp. (IMG.TO) shed 1.50 percent, while Barrick Gold Corp. (ABX.TO) dropped 0.90 percent. Kinross Gold Corp. (K.TO) dived 3.11 percent.
The Diversified Metals & Mining Index plummeted 2.33 percent, with First Quantum Minerals Ltd. (FM.TO) surrendering 3.21 percent, Osisko Mining Corp. (OSK.TO) shed 1.85 percent, and Teck Resources Limited (TCK_B.TO) dropping 3.31 percent. Lundin Mining Corp. (LUN.TO) gained 0.46 percent.
The Energy Index shed 0.53 percent, although U.S. crude oil futures for July delivery surged $1.16 or 1.2 percent to close at $97.85 a barrel Friday on the Nymex.
Among energy stocks, Suncor Energy Inc. (SU.TO) dropped 1.15 percent, while Canadian Natural Resources Limited (CNQ.TO) slipped 0.95 percent. Enbridge Inc. (ENB.TO) surrendered 0.04 percent, while Talisman Energy Inc. (TLM.TO) lost 1.36 percent. Encana Corp. (ECA.TO) declined 1.33 percent, while Niko Resources (NKO.TO) plummeted 5.17 percent.
The Financial Index slipped 0.74 percent with Manulife Financial Corp. (MFC.TO) down 1.44 percent, Bank of Nova Scotia (BNS.TO) down 0.72 percent, and Bank of Montreal (BMO.TO) down 0.66 percent. Royal Bank of Canada (RY.TO) dropped 0.94 percent, while The Toronto-Dominion Bank (TD) surrendered 1.12 percent.
The Information Technology Index dropped 1.25 percent, with BlackBerry (BB.TO) down 0.20 percent.
The Capped Industrials Index shed 0.82 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) down 2.09 percent. Air Canada (AC.B.TO) gained 1.64 percent.
Brookfield Office Properties Inc. (BPO.TO) shed 0.23 percent after announcing the commencement of a cash tender offer through a direct subsidiary to purchase all outstanding shares of preferred stock of MPG Office Trust Inc. (MPG).
In economic news, the U.S. Federal Reserve said industrial production in May came in flat, following a revised 0.4 percent decrease in April. Economists expected production to rise by 0.2 percent compared to the 0.5 percent drop originally reported for the previous month. While mining output rose by 0.7 percent in May after rising by 1.1 percent in April, manufacturing output inched up by just 0.1 percent following a 0.4 percent drop in the previous month.
Consumer sentiment in the U.S. unexpectedly deteriorated in June, with a preliminary reading on the consumer sentiment index at 82.7, down from the final May reading of 84.5, according to a Thomson Reuters and the University of Michigan report. Economists expected the index to come in unchanged compared to the previous month.
The U.S. Labor Department said its producer price index rose by 0.5 percent in May following a 0.7 percent decrease in April. Economists expected producer prices to edge up by 0.2 percent.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.