Aug 16 (Reuters) - Canada's main stock index ended higher on Friday as investors globally cheered recent signs of U.S. economic resilience and record high gold prices boosted metal mining shares, with the index notching its biggest weekly advance of the year.
The S&P/TSX composite index (.GSPTSE), ended up 21.89 points, or 0.1%, at 23,054.61, its seventh straight day of gains. That's the longest daily winning streak since April 2023.
For the week, the index was up 3.3%, its biggest weekly advance since October, putting it back in reach of the record closing high it posted last month.
"We've seen an incredible rebound in not just the Canadian equity market, but global equity markets," said Douglas Porter, chief economist at BMO Capital Markets.
Global markets have recovered from a selloff last week as the latest U.S. inflation and retail sales data allayed recessionary fears and kept bets intact the Federal Reserve would begin cutting interest rates in September.
The materials group, which includes metal miners and fertilizer companies, was up 1.5% as the price of gold climbed more than 2% to notch an all-time high.
Shares of New Gold Inc ended 6.4% higher after National Bank of Canada raised its price target on the stock.
Financials, which account for 29% of the TSX's weighting, added 0.6%, while energy was a drag, falling 1.1%, as the price of oil settled 1.9% lower at $76.65 a barrel on tempered expectations of demand growth from China.
Industrials also lost ground, pressured by declines for Canadian National Railway Co (CNR.TO), and Canadian Pacific Kansas City Ltd (CP.TO).
Both railroad companies have issued embargoes on certain shipments in advance to a potential strike from the Teamsters Canada Rail Conference Union that could begin as early as Aug. 22.
Reporting by Fergal Smith in Toronto and Nikhil Sharma in Bengaluru; Editing by Shreya Biswas and Deepa Babington
