The Canadian stock market is under pressure Friday morning. The majority of the Canadian sectors are trading in the red this morning, with the heaviest losses among the gold and healthcare sectors.
The strong Canadian GDP report yesterday has convinced investors that the Bank of Canada is likely to announce an interest rate hike. However, today's disappointing U.S. jobs report for August has raised doubts about the Fed's ability to hike rates.
Markets on Wall Street are nearly flat in early trade Friday, following the release of the weaker than expected U.S. jobs report.
Job growth in the U.S. came in well below economist estimates in the month of August, according to a closely watched report released by the Labor Department on Friday. The Labor Department said non-farm payroll employment climbed by 156,000 jobs in August compared to expectations for an increase of about 180,000 jobs.
The unemployment rate subsequently inched up to 4.4 percent in August from 4.3 percent in July. Economists had expected the unemployment rate to remain unchanged.
Markets in Europe are trading modestly to the upside Friday. Early strength was generated by strong Eurozone manufacturing data.
The benchmark S&P/TSX Composite Index is down 25.15 points or 0.17 percent at 15,186.72.
On Thursday, the index closed up 78.74 points or 0.52 percent, at 15,211.87. The index scaled an intraday high of 15,228.10 and a low of 15,147.78
The Capped Healthcare Index is lower by 1.29 percent. Valeant Pharmaceuticals International is dropping 2.68 percent.
The Gold Index is decreasing 1.15 percent. Gold prices are inching higher Friday morning, extending yearly highs.
Eldorado Gold (ELD.TO) is losing 1.17 percent and Goldcorp (G.TO) is decreasing 0.93 percent. B2Gold (BTO.TO) is climbing 1.17 percent and Yamana Gold (YRI.TO) is surrendering 1.36 percent. Kinross Gold (K.TO) is declining 2.64abx percent and Barrick Gold (ABX.TO) is down 0.76 percent. IAMGOLD (IMG.TO) is also lower by 0.48 percent.
The Capped Materials Index is down 0.45 percent. Agnico Eagle Mines (AEM.TO) is weakening by 1.34 percent and Franco-Nevada (FNV.TO) is losing 0.95 percent. Agrium (AGU.TO) is slipping 0.07 percent and Potash Corp. of Saskatchewan (POT.TO) is lower by 0.05 percent.
The Capped Industrials Index is down 0.43 percent. Air Canada (AC.TO) is declining 1.07 percent and Canadian Pacific Railway (CP.TO) is decreasing 0.20 percent. Canadian National Railway (CNR.TO) is losing 0.74 percent.
Bombardier (BBD-B.TO) is falling 0.40 percent. After it was recently shut out of a US$3.2-billion contract to supply subway cars in New York City, the company issued a letter to employees blaming the company's poor performance on Toronto's rail system.
The Capped Telecommunication Services Index is down 0.44 percent. Rogers Communications (RCI-B.TO) is losing 0.77 percent and TELUS (T.TO) is falling 0.31 percent. BCE (BCE.TO) is weakening by 0.24 percent.
The Capped Information Technology Index is losing 0.19 percent. BlackBerry (BB.TO) is falling 1.30 percent and Sierra Wireless (SW.TO) is decreasing 1.48 percent.
The Energy Index is rising 0.16 percent. Crude oil prices are slipping Friday morning amid worries that the impact of Hurricane Harvey on Houston-area refineries is worse than expected.
Suncor Energy (SU.TO) is rising 0.28 percent and Cenovus Energy (CVE.TO) is advancing 1.33 percent. Husky Energy (HSE.TO) is climbing 0.48 and Enbridge (ENB.TO) is adding 0.38 percent. Imperial Oil (IMO.TO) is increasing 1.03 percent.
The heavyweight Financial Index is decreasing 0.11 percent. Royal Bank of Canada (RY.TO) is falling 0.44 percent and Bank of Nova Scotia (BNS.TO) is slipping 0.14 percent. Canadian Imperial Bank of Commerce (CM.TO) is losing 0.24 percent and Bank of Montreal (BMO.TO) is lower by 0.38 percent.
On the economic front, China's manufacturing activity expanded at a faster pace in August on new orders, survey results from IHS Markit showed Friday.
The Caixin Purchasing Managers' Index rose to 51.6 in August from 51.1 in July. The score was forecast to drop to 51.0.
The euro area manufacturing activity expanded at the fastest pace since 2011, as initially estimated, final survey data from IHS Markit showed Friday. The manufacturing Purchasing Managers' Index rose to 57.4 in August, in line with flash estimate, from 56.6 in July and equaling June's 74-month high.
The UK manufacturing sector expanded strongly in August driven by widespread growth across sectors, survey data from IHS Markit showed Friday.
The Markit/Chartered Institute of Procurement & Supply Purchasing Managers' Index rose unexpectedly to 56.9 in August from 55.3 in July. This was the second-highest level in over three years. The expected level was 55.0.
Activity in the U.S. manufacturing sector expanded faster than estimated in the month of August, the Institute for Supply Management revealed in a report on Friday.
The ISM said its purchasing managers index climbed to 58.8 in August from 56.3 in July, with a reading above 50 indicating growth in the manufacturing sector. Economists had expected the index to inch up to 56.5.
Partly reflecting a steep drop in spending on public construction, the Commerce Department released a report on Friday showing an unexpected decrease in U.S. construction spending in the month of July. The report said construction spending fell by 0.6 percent to an annual rate of $1.212 trillion in July from the revised June estimate of $1.219 trillion. Economists had expected spending to rise by 0.5 percent.
Consumer sentiment in the U.S. improved by less than initially estimated in the month of August, according to a report released by the University of Michigan on Friday. The report said the consumer sentiment index for August was downwardly revised to 96.8 from the preliminary reading of 97.6. Economists had expected the index to be revised to 97.4.
In commodities, crude oil futures for September delivery are down 0.59 or 1.25 percent at $46.64 a barrel.
Natural gas for September is up 0.014 or 0.46 percent at $3.054 per million btu.
Gold futures for December are up 2.20 or 0.17 percent at $1,324.40 an ounce.
Silver for September is up 0.055 or 0.31 percent at $17.63 an ounce.
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