By Nikhil Sharma and Fergal Smith
(Reuters) – Canada’s main stock index edged up to a near five-week high on Thursday, as resource shares advanced ahead of U.S. and Canadian employment data that could guide expectations for central banks interest rate cuts.
The Toronto Stock Exchange’s S&P/TSX composite index ended up 20.35 points, or 0.1%, at 22,244.022, its highest closing level since May 31. Volumes were lighter than usual, with U.S. markets closed for Independence Day.
Canada and the U.S. are due on Friday to release employment data for June. Recent signs of a slowdown in the U.S. economy have led to increased bets the Federal Reserve would begin cutting rates as soon as September.
The Bank of Canada has already begun its easing cycle, lowering its benchmark rate by 25 basis points to 4.75% last month. Investors see a roughly 40% chance the BoC would cut again in July.
“The hopes of interest rate decreases have been very positive for…
