Canada’s main stock index opened subdued on Friday as investors assessed U.S. labour market data, maintaining expectations of a September rate cut.
The TSX Composite Index re-surged 65.74 points to open Friday at 23,054.02.
The Canadian dollar pointed downward 0.08 cents at 74. cents U.S.
In corporate news, Japanese retail giant Seven & i Holdings rejected Canada’s convenience store operator Alimentation Couche-Tard’s $38.5 billion cash bid. Couche-Tard stock rose $1.09, or 1.5%, to $76.50.
Statistics Canada informs us that employment was little changed in August (+22,000; +0.1%) while the employment rate decreased 0.1 percentage points to 60.8%. The unemployment rate rose 0.2 percentage points to 6.6%.
Later on this morning, the IVEY PMI will be released for August.
ON BAYSTREET
The TSX Venture Exchange eked higher 0.21 points to 550.49.
All but two of the 12 TSX subgroups gained, with health-care, information technology and financials each ahead 0.5%.
Only materials and gold missed out on the party, materials shedding 0.2%, while gold lost 0.1%.
ON WALLSTREET
The S&P 500 edged up Friday as investors assessed a weaker-than-expected August jobs report and its implication on U.S. monetary policy.
The Dow Jones Industrial index gained back 205.63 points to open Friday at 40,961.38.
The much-broader index reversed 1.1 points to 5,502.31.
The NASDAQ lost 79.51 points to 17,048.13.
Popular semiconductor stocks lagged after Broadcom forecast fiscal fourth-quarter revenue that came up short of analyst estimates. Shares shed 9%, while Nvidia, Advanced Micro Devices and Marvell Technology slumped at least 2% in sympathy. The iShares Semiconductor ETF declined 2%.
Fresh August jobs data showed further signs of a slowing labor market as growth fears mount on Wall Street. Nonfarm payrolls grew by 142,000, versus a 161,000 gain expected by economists polled by Dow Jones. However, the unemployment rate edged down to 4.2%, in line with expectations.
Friday’s data print comes on the heels of a rocky week for equity markets. The S&P 500 is on pace for a 2.4% decline and its worst week since April, while the NASDAQ is down 3.5%. The 30-stock Dow has slumped 1.3%.
Prices for the 10-year Treasury tailed off, raising yields to 3.76% from Thursday’s 3.73%. Treasury prices and yields move in opposite directions.
Oil prices took on 52 cents to $69.67 U.S. a barrel.
Gold prices dropped $7.30 to $2,535.80.
