Markets weigh interest rate hikes... Canada added 45,000 jobs, CIBC economist predicts rate rise July 12...
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Markets weigh interest rate hikes
Interest rates were in focus Friday as Canada and the US both posted job gains, heightening expectation of rate increases.
Also on the mind of Canadian investors was a new slump in oil and gold prices, which led the materials sector down 1.8 per cent and energy down almost 1.5 per cent.
All but three sector groups closed lower and the main TSX index overall was down more than 50 points.
Wall Street headed in the opposite direction as the US economy added 222,000 jobs, beating expectations. The Nasdaq saw the largest gains of more than 1 per cent.
European indexes closed mostly higher although Paris slipped. Asian markets were lower with Shanghai outperforming.
The S&P/TSX Composite Index closed down 50.84 (0.34 per cent)
The Dow Jones closed up 94.30 (0.44 per cent)
Oil is trending lower (Brent $46.79, WTI $44.32 at 4.25pm)
Gold is trending lower (1211.90 at 4.25pm)
The loonie is valued at U$0.7765
Canada added 45,000 jobs, CIBC economist predicts rate rise July 12
There were 45,000 new jobs in Canada in June, mostly part-time roles with a 1.9 per cent rise in employment (351,000) compared to a year earlier.
The unemployment rate was down 0.1 per cent from May to 6.5 per cent.
Statistics Canada reported Friday that the gains in June were in women aged 55 and older and among core-aged women with little change in other demographics.
There was little change in youth employment month-over-month and the unemployment rate for young Canadians remained at 12 per cent, down 1 percentage point from a year earlier.
The stronger labour market will increase the likelihood for the BoC to increase interest rates next week.
In a note to clients, CIBC chief economist Avery Shenfeld wrote: “today’s jobs numbers cement the case for the central bankers to raise rates in the coming week.”
Interest rates were in focus Friday as Canada and the US both posted job gains, heightening expectation of rate increases.
Also on the mind of Canadian investors was a new slump in oil and gold prices, which led the materials sector down 1.8 per cent and energy down almost 1.5 per cent.
All but three sector groups closed lower and the main TSX index overall was down more than 50 points.
Wall Street headed in the opposite direction as the US economy added 222,000 jobs, beating expectations. The Nasdaq saw the largest gains of more than 1 per cent.
European indexes closed mostly higher although Paris slipped. Asian markets were lower with Shanghai outperforming.
The S&P/TSX Composite Index closed down 50.84 (0.34 per cent)
The Dow Jones closed up 94.30 (0.44 per cent)
Oil is trending lower (Brent $46.79, WTI $44.32 at 4.25pm)
Gold is trending lower (1211.90 at 4.25pm)
The loonie is valued at U$0.7765
Canada added 45,000 jobs, CIBC economist predicts rate rise July 12
There were 45,000 new jobs in Canada in June, mostly part-time roles with a 1.9 per cent rise in employment (351,000) compared to a year earlier.
The unemployment rate was down 0.1 per cent from May to 6.5 per cent.
Statistics Canada reported Friday that the gains in June were in women aged 55 and older and among core-aged women with little change in other demographics.
There was little change in youth employment month-over-month and the unemployment rate for young Canadians remained at 12 per cent, down 1 percentage point from a year earlier.
The stronger labour market will increase the likelihood for the BoC to increase interest rates next week.
In a note to clients, CIBC chief economist Avery Shenfeld wrote: “today’s jobs numbers cement the case for the central bankers to raise rates in the coming week.”
