TSX Slides on Job Figures

Canada’s main stock index opened higher on Friday amid broader gains, after U.S. data showed an unexpected rise in unemployment rate, boosting hopes that the Federal Reserve could start trimming rates in September.

The TSX Composite Index sagged 104.62 points to begin Friday at 22,139.40.

The Canadian dollar gave back 0.20 cents to 73.25 cents U.S.

In corporate news, the federal government approved Switzerland-based miner Glencore’s $6.93-billion takeover of Teck Resources’ steelmaking coal unit with strict conditions to preserve jobs. Teck shares gained 99 cents, or 1.4%, to $69.94.

On the economic front, Statistics Canada the economy lost 1,400 jobs in June, boosting the unemployment rate 0.2 percentage points to 6.4%. Elsewhere, the seasonally-adjusted IVEY PMI leaped to 62.5 in June to 52.0 from 52.0 in May and 50.2 in June 2023. A reading above 50 indicates an increase in activity.


The TSX Venture Exchange slid 0.78 points to 579.10.

All but two of the 12 TSX subgroups were down in the first hour, with energy slumping 1.7%, industrials off 0.8%, and consumer discretionary stocks trailing 0.4%.

The two gainers proved to be gold, shining 1.5% brighter, and materials, stronger by 0.5%.


Stocks were mostly little changed, but the S&P 500 managed to tick higher as the benchmark index heads for yet another weekly gain during the holiday-shortened trading week.

The Dow Jones Industrials dipped 90.39 points to open Friday at 39,217.61.

The much-broader index inched up 3.26 points to 5,540.28.

The NASDAQ pushed forward 75.52 points to 18,263.83.

The S&P 500’s rally this year has grown to 16% with the benchmark on pace for its fourth positive week in the last five as investors bet any economic weakness later this year will be met with a Federal Reserve rate cut.

Widely monitored labour data released Friday morning reflected a 206,000 increase in nonfarm payroll adds in June and a slight uptick in the unemployment rate, which rose to 4.1%. Economists expected the jobless rate to remain steady at 4%.

The NASDAQ has improved 3.2%, and S&P 500 has climbed more 1.6% in the week. Both closed at all-time highs and notched new intraday records on Wednesday. The Dow has lagged this week, adding around 0.3%.

Nvidia shares dropped 0.6% following a rare Wall Street downgrade, which cited limited upside for the chipmaker. The stock is still up 2.6% for the week. Tesla rose 1%, adding to its whopping week-to-date gain of more than 25%.

Prices for the 10-year Treasury jumped, lowering yields to 4.31% from Wednesday’s 4.35%. Treasury prices and yields move in opposite directions.

Oil prices eked up 0.02 cents at $83.90 U.S. a barrel.

Gold prices bounced $17.60 to $2,387

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