Everything You Need to Know on Friday: Canadian Retail Sales Surge Continues for Fourth Month Amid Interest Rate Cuts

Good morning mooers! Here are things you need to know about today's market:

● S&P/TSX 60 Index Standard Futures are trading at 1,525.40, up 0.22% from previous close

● Canadian retail sales surge continues for fourth month Amid interest rate cuts

● Gold prices rise for fifth session amid geopolitical tensions and strengthening dollar

● Platinum Group Metals shares surge on potential leadership in PGM sector highlighted by NetworkNewsWire editorial

Today, the Canadian dollar is trading at 71.57 US cents, an increase from the previous close.

Canadian retail sales have increased for a consecutive fourth month, marking the longest period of growth since early 2022, indicating that the recent cuts in interest rates by the central bank are positively impacting consumer spending.

Statistics Canada reported on Friday that an advanced estimate indicated a 0.7% jump in retailer receipts for October, the highest increase since July, following a 0.4% rise in September.

Including the rise in September, which met Bloomberg survey expectations, retail sales for the third quarter increased by 0.9%. This is a notable improvement compared to the first half of the year, which experienced the largest downturn since 2009, excluding the pandemic period.

In response to the economic situation, the Bank of Canada aggressively lowered interest rates by 50 basis points in October to bolster economic activities. Despite a reacceleration of inflation last month, which reduces the likelihood of another significant rate cut in December, it is anticipated that policymakers will continue to implement gradual reductions in rates to ease borrowing costs.

Additionally, Prime Minister Justin Trudeau's administration announced on Thursday a plan to remove federal sales taxes on several items including prepared foods, certain alcoholic beverages, books, and toys during the winter holidays. The government will also distribute a one-time payment of C$250 ($179) to nearly 19 million Canadians next spring. This stimulus package is expected to boost consumer spending through the fourth quarter and into the following year.

In September, retail sales saw increases in six out of nine subsectors, with notable gains in food and beverage stores and building material and garden equipment suppliers. The most significant decline was observed at gas stations, marking their fifth consecutive monthly decrease, primarily due to lower fuel prices, even though the volume in this sector grew by 3.2%. Car dealership sales also declined.

Core retail sales, which exclude gas stations and car dealerships, saw a significant rise of 1.4%. In terms of volume, receipts rose by 0.8%. Excluding autos, sales increased by 0.9%, surpassing economists' expectations of a 0.4% increase and representing the fastest growth rate since April.

Regionally, sales increased in five out of ten provinces, with Alberta recording the largest rise of 2.3%, driven primarily by higher receipts at car dealerships.

Details for the October estimate, which was derived from responses from 58.9% of companies surveyed, were not provided by the statistics agency. The average final response rate for the survey over the past 12 months was 88.9%.

Gold prices climbed for the fifth consecutive session early Friday, extending gains as the metal rebounded from losses incurred after the U.S. presidential election, despite a strengthening dollar which reached its highest level in two years.

February delivery of gold was observed rising by US$22.50, reaching US$2,721.80 per ounce.

This price increase was driven by heightened safe-haven demand following Ukraine's initial use of foreign missiles in an attack on Russia, which led to Russia's retaliatory strike on Dnipro with a newly developed hypersonic ballistic missile, alongside additional nuclear threats from the nation.

Such geopolitical tensions spurred investors to turn to gold, helping it recover from a significant 6.5% decline over eight sessions post-election.

"The market's response to Trump's election victory has moderated somewhat, allowing gold to regain some of its earlier losses. The persistent global risks have contributed to the resurgence of gold prices to more stable levels," said Christopher Louney, a commodities strategist at RBC Capital Markets.

Concurrently, the ICE dollar index, which typically moves inversely to commodity prices, increased by 0.44 points to 107.41, marking the highest level since November 2022.

Platinum Group Metals is making significant strides with its Waterberg project in South Africa, positioning itself amid the global pivot towards clean-energy solutions. The Waterberg project is noted for producing platinum group metals that are not only pure but also possess high melting points and exceptional catalytic qualities.

The company stated, "With the ongoing supply disruptions from key producers and escalating geopolitical tensions constricting the market, mining firms are poised for substantial growth. Platinum Group Metals stands out as an emerging leader in the PGM sector, bolstered by the strong performance of its Waterberg Project in South Africa."