TSX notches weekly gain as corporate profits impress investors

* TSX ends up 0.7% at 34,077.76

* Posts highest closing level since April 20

* Mining stocks lead gains as gold rises

* Economy sheds jobs in April

By Fergal Smith

TORONTO, - Canada's main stock index rose to a near three-week high on Friday as investors cheered recent growth in corporate earnings, and after weaker-than-expected domestic jobs data tempered expectations for interest rate hikes.

The Toronto Stock Exchange's S&P/TSX composite index ended up 221.14 points, or 0.7%, at 34,077.76, marking its highest closing level since April 20. For the week, the index was up 0.6%, after two straight weekly declines.

"There is still a lot of uncertainty, but it is hard to ignore the strength in corporate fundamentals," said Angelo Kourkafas, a senior global investment strategist at Edward Jones. "I think corporate profits are doing the heavy lifting for the index." The United States said it expected an Iranian response as soon as Friday to its latest proposal to end the war in the Gulf, even as U.S. and Iranian forces traded fire and the United Arab Emirates came under renewed attack.

Canada's unemployment rate rose to a six-month high in April to 6.9% as the economy lost a net 17,700 jobs, indicating continued weakness in a labor market that has struggled in the face of U.S. tariffs.

"The implication for markets is that will likely keep the Bank of Canada on hold and it's paring back some of the rate hike expectations that we've seen in the bond market," Kourkafas said.

Canada's 2-year yield fell 7.4 basis points to 2.860%, extending its pullback from a six-week high of 3.077% on Monday. In contrast, U.S. employment data pointed to labor market resilience, reinforcing expectations the U.S. Federal Reserve would leave interest rates unchanged for some time.

The materials group, which includes metal mining shares, rose 3.3% as the price of gold increased. Another bright spot was the consumer discretionary sector . It added 1.1%, with shares of Aritzia up 4.5% after the clothing retailer beat earnings estimates.

Enbridge reported first-quarter adjusted profit that surpassed analysts' expectations. Still, the pipeline operator's shares were down 0.5%, which helped cap gains for the energy sector. U.S. crude oil futures settled 0.6% higher at $95.42 a barrel.

This article was generated from an automated news agency feed without modifications to text.