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Wednesday, August 17, 2022

TSX slips after surprise drop in Aug jobs

TSX slips after surprise drop in Aug jobsCanada’s main stock index fell on Friday after domestic data showed a surprise decline in jobs in August and as trade and tariff worries continued to weigh.

At 9:36 a.m. ET (13:36 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was down 95.84 points, or 0.6 percent, at 16,005.1.

TSX has closed lower in the past five sessions in a row and is set for biggest weekly decline in 24 weeks at current level.

Canadian economy unexpectedly shed 51,600 jobs in August after two months of gains, lifting the unemployment rate to 6 percent. Reuters poll of analysts had predicted a gain of 5,000 jobs and unemployment rate to rise to 5.9 percent.

US stocks indexes also fell after a strong US jobs data underscored tightening labor market conditions and cemented expectations for the Federal Reserve increasing interest rates further.

On the trade front, US and Canadian negotiators pushed ahead in grinding talks to rescue the NAFTA, but a few stubborn issues stood in the way of a deal.

Investors were also bracing themselves for a fresh salvo of Sino-US tariffs as public comment period for proposed US tariffs on an additional $200 billion worth of Chinese imports ended at midnight on Thursday.

All of the index’s 11 major sectors fell, led by the energy sector’s 1.7 percent alongside a slide in oil prices.

US crude prices were down 1 percent a barrel, while Brent crude lost 0.5 percent.

The materials sector was the second-biggest lag on the main index with its 1 percent fall.

Gold futures fell 0.4 percent to $1,193.1 an ounce, while copper prices advanced 0.1 percent to $5,935.5 a tonne.

The financials sector slipped 0.3 percent, while industrials edged 0.2 percent lower.

The largest percentage gainer on the TSX was Enghouse Systems, which jumped 3.3 percent after its quarterly results, followed by Sierra Wireless that rose 2.3 percent.

Transcontinental Inc fell 5.2 percent, the most on the TSX, after its quarterly results. The second-biggest decliner was Cenovus Energy, down 4.2 percent.

The most heavily traded shares by volume were cannabis companies Hexo Corp, Aurora Cannabis and Aphria Inc.

On the TSX, 35 issues were higher, while 201 issues declined for a 5.74-to-1 ratio to the downside, with 13.21 million shares traded.

The TSX posted one new 52-week highs and 17 new lows.

Across all Canadian issues, there were nine new 52-week highs and 34 new lows, with total volume of 22.23 million shares.

Copyright Reuters, 2018

Source: Brecorder

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