TSX index slips after US and Canadian jobs data

Content of the article

Resource-rich Canada’s main stock index fell on Friday and was expected to end the week lower as energy stocks posted steep weekly losses as fears of aggressive central bank policy tightening weighed on global sentiment.

As of 10:13 a.m. ET (2:13 p.m. GMT), the Toronto Stock Exchange’s S&P/TSX Composite Index was down 15.14 points, or 0.08%, at 19,561.9.

The index took inspiration from global markets as US and European equities fell after stronger-than-expected US jobs data fueled expectations of a 75 basis point rate hike during the September meeting of the Federal Reserve.

Content of the article

Meanwhile, the Canadian economy unexpectedly lost jobs for the second consecutive month in July after a year-long boom, but analysts predicted that would not stop the Bank of Canada from raising interest rates. interest in fighting inflation.

« As today’s numbers further muddy the waters for policymakers, the Bank of Canada will likely focus on historic low unemployment and still strong wage growth to justify another non-standard rate hike during its next meeting, » said Andrew Grantham, senior economist at CIBC Capital Markets.

Canada’s central bank raised rates by 100 basis points last month in a bid to combat soaring prices and said further hikes would be needed.

Weighing down on the index, rate-sensitive tech stocks fell 0.7%.

Content of the article

The materials sector, which includes precious and base metal miners and fertilizer companies, lost 0.3% as gold futures fell 1.0% to $1,769.9 the ounce.

The resource-heavy Toronto benchmark was expected to end the week down 0.8%, led by an 8.1% weekly decline in energy stocks as oil prices retreated on concerns over a possible recession and a drop in fuel demand.

Among individual movers, Canopy Growth Corp tumbled 6.8% after posting another basis loss, shaking investors’ hopes the cannabis producer would soon turn profitable.

TC Energy Corp fell 4.8% after announcing on Thursday that it had reached an agreement with a Mexican utility to develop a $4.5 billion gas pipeline. (Reporting by Bansari Mayur Kamdar and Johann M Cherian in Bengaluru; Additional reporting by Fergal Smith; Editing by Shailesh Kuber)