29.07.201616:13:00UTC+00Canadian Stocks Red-hot In July -- Canadian Commentary

Canadian stocks finished a strong month a relatively high note Friday despite discouraging economic news from both sides of the border.

U.S. Gross domestic product climbed by 1.2 percent in the second quarter following a downwardly revised 0.8 percent increase in the first quarter.

Economists had expected GDP to jump by 2.6 percent.

The Canadian economy shrank 0.6 percent in May as negative impact of the Ft. McMurray wildfire spread beyond the oil sector, Stats Canada said.

Investors took the news in stride amid confidence the Federal Reserve will hold US interest rates near zero for the rest of the year.

The S&P/TSX Composite Index was up -- staying near its highest since in almost a year. The index rose sharply in July.

The energy sector steadied along with crude oil prices. Oil prices held near $41 barrel after big losses in July.

Enbridge Inc. (ENB.TO) said second quarter profits fell 10 percent. The pipeline operator said it is fully committed to developing its 'Northern Gateway.' Shares rose 4.4 percent.

Imperial Oil (IMO.TO) posted a quarterly loss, stung by the Ft. McMurray wildfires. Shares slipped 0.6 percent.

Air Canada (AC.A.TO) profits rose above estimates on lower fuel costs. Shares fell 4.9 percent.