TSX pares weekly decline as tech shares rally

Canada's main stock index, the S&P/TSX Composite Index, ended the week down 2.2% but pared its decline on Friday, led by a rally in technology shares. The index closed at 35,697.49, up 191.21 points or 0.5% from the previous day's close. This marked the index's lowest closing level in nearly six weeks on Thursday. Oil prices also retreated, contributing to the relief rally in equities. U.S. crude oil futures settled 2.4% lower at $100.05 a barrel, following a report that foreign ministers in the Middle East are trying to work out a temporary deal with Iran to manage shipping through the Strait of Hormuz. The technology sector rose 3.6%, with shares of electronic equipment company Celestica gaining 6.6%. Industrials added 0.7% and financials ended 0.6% higher, while the materials group, which includes metal mining shares, was up 1.1% as gold rallied. Despite this, the energy sector remained down 0.7%. According to Douglas Porter, chief economist at BMO Capital Markets, the gains in equities reflected a modest late-week pullback in oil prices and a view that the medium-term outlook for inflation may be less fraught with the Federal Reserve likely to start tightening again.