04:22 PM EDT, 07/03/2025 (MT Newswires) -- The Toronto Stock Exchange kept its upward streak intact on Thursday, rising to its third-straight record close as it climbed above the 27,000 mark as investors continue to show they are comfortable adding risk as a report showed Canada's international exports are on the rise.

The S&P/TSX Composite Index closed up 164.6 points to close at 27,034.26,, topping Wednesday's record close of 26,869.66. Most sectors were higher, with the Battery Metals climbing 4.4%, leading gains. Healthcare was at the bottom of the list, dropping 1.7%.

Scotiabank, in its monthly publication on Canada-US Trade, said May may mark the beginning of a recovery in trade for Canada. Statistics Canada reported that Canadian exports rose 1.1% in May, following a steep 10.8% drop in April. This was the first export increase in four months. Exports to the US fell by 0.9%, while exports to other countries rose by 5.7%, continuing a recent trend of growing trade outside the United States. Canada is now less dependent on the United States for trade than before, with the share of exports going to the US dropping from 76% in 2024 to 68% in May.

John McNally, Senior Policy Advisor at Scotiabank, said that for Canada-US trade, the future is uncertain. "A handshake deal to make a trade deal by July 21 offers promise to maintain stability or improve circumstances, but Canada has also committed to raise counter-tariffs on steel and aluminum imports if no agreement is reached by that date. This could be a negotiating ploy, or could re-escalate tensions mid-summer. The recent reversal on the DST indicates a potential Canadian bias towards making a deal."

The report added that one month of slightly improved trade does not answer all questions. It will take a few more months, especially through July and August, before the full effects of tariff changes on prices, investment, and spending become clear. For now, the data shows early signs of recovery but still reflects past disruptions.

Robert Embree, Senior Economist at Rosenberg Research, said with no large rebound in exports, he and the team remain "fundamentally bearish" on the Canadian dollar, as the weak employment and growth numbers should compel faster than expected Bank of Canada easing over the next nine months. "The large trade deficit is another bearish pressure for the loonie, and the export growth after last month's huge hit shows that the BoC has more work to do," he added.

Vikram Barhat at Morningstar said Canadian stocks had a strong second quarter despite global uncertainty and a trade war led by US President Donald Trump. Analysts credit this performance to the Canadian market's defensive qualities, low stock prices, and a heavy focus on financial companies, which attracted investors.

Of commodities, West Texas Intermediate (WTI) crude oil closed lower amid signs the market is oversupplied as US inventories rise during the summer driving season, with OPEC+ boosting production, while risk premiums ease as Middle East tensions fade. WTI crude oil for August delivery closed down US$0.45 to settle at US$67.00 per barrel, while September Brent crude was last seen down US$0.29 to US$68.82.

Gold traded lower late afternoon on Thursday as the dollar and yields spiked after the United States added more new jobs than expected last month, easing concerns the No.1 economy is slowing. Gold for August delivery was last seen down US$21.70 to US$3,338.00 per ounce.