Street Calls of the Week
Investing.com - Canada’s main stock exchange gained slightly on Friday, after the release of Canadian and U.S. employment data.
By 4:01 ET, the S&P/TSX 60 index standard futures contract had moved up by 5.51 point, or 0.32%.
The S&P/TSX composite index gained 134 points or 0.47% at 29,050.63.
Index notched a fresh all-time peak on Thursday, surpassing a previous high set on Wednesday. The average has now logged seven consecutive sessions of gains, its longest winning streak since May.
Canada’s labor market softened further in August, with employment declining by 66,000 jobs and the unemployment rate rising to 7.1%, according to data released Friday by Statistics Canada. The report marks the second consecutive month of job losses, adding to signs of a cooling labor market amid a period of broader economic uncertainty.
A spike in gold prices has helped to boost metal mining shares, a major portion of the TSX. Materials, along with energy and financials, account for some 64% of the TSX’s weighting and have jumped by over 50% so far this year.
Markets are now squarely focused on Canadian and U.S. jobs figures due out on Friday. Economists are predicting tepid gains in both readings, possibly securing a path ahead for rate reductions by both the Bank of Canada and Federal Reserve.
S&P, Nasdaq fell climb
U.S. stocks fell from record high levels on Friday as signs of a cooling labor market and recession worries outweighed bets that the Federal Reserve will cut interest rates later this month.
The benchmark S&P 500 fell by 19 points, or 0.29%, while the tech-heavy NASDAQ Composite slipped 7 points, or 0.03%, and the blue-chip Dow Jones Industrial Average was lower by 220 points, or 0.48%
In individual stocks, server chips maker Broadcom Inc (NASDAQ:AVGO) rallied by over 8% in premarket trade on strong quarterly results. Samsara (NYSE:IOT) added more than 10% following solid returns, while DocuSign (NASDAQ:DOCU) gained nearly 8%.
The main averages on Wall Street advanced in the prior session, with the benchmark S&P 500 in particular notching a fresh record closing high. Underpinning sentiment was labor market data that further bolstered wagers that the Fed will slash interest rates at its September 16-17 policy gathering.
Figures showed that private-sector hiring slowed last month, while new claims for unemployment benefits edged up by more than anticipated -- both fresh indications of a possible in the American jobs picture.
Gold ticks up
Gold prices were slightly higher in early European trading on Friday, as U.S. interest rate cut bets kept the yellow metal close to recent peaks and investors awaited a hotly-anticipated nonfarm payrolls data.
Spot gold rose 1.23% to $3,651.10 an ounce at 12.05 ET. Spot prices hit a record high of $3,578.80/oz earlier this week.
Bullion, along with broader metal prices, was also on track for a third straight weekly gain as the dollar lost ground amid increasing conviction in a September rate reduction by the Fed.
Oil slides
Oil prices fell in European trade, as traders attempt to gauge whether the OPEC+ producer group will agree to further increase output at a meeting scheduled to take place over the weekend.
Crude prices were headed for weekly declines as an unexpected build in U.S. inventories also sparked some concerns over cooling fuel demand.
Brent oil futures for November fell 2.76% to $65.14 a barrel, while West Texas Intermediate crude futures dipped by 3.09% to $61.52 a barrel by 12.05 ET.