Canada’s TSX falls by most since June; loonie rebounds after jobs gain By Reuters

Canada's TSX falls by most since June; loonie rebounds after

© Reuters. The facade of the original Toronto Stock Exchange building is seen in Toronto

By Fergal Smith

TORONTO (Reuters) – Canada’s main stock market index fell on Friday by the most in nearly three months as a selloff in high-flying technology shares continued, while the Canadian dollar strengthened as domestic jobs data added to evidence of economic recovery.

The Toronto Stock Exchange’s S&P/TSX composite index () fell 1.8% to 16,151.28, its largest decline since June 11. It was the second straight day of sharp declines for the TSX and other North American indices, which had been on a tear since March.

“The market sell-off has been driven by technology names which have fallen in sympathy with U.S. counterparts and equity markets in general,” said Ben Jang, a portfolio manager at Nicola Wealth. “Profit taking is not surprising given the recent outsized returns in technology.”

Shares of commerce platform provider Shopify (NYSE:) Inc <>, Canada’s largest company by market capitalization, fell 6.5%.

The information technology sector () was down 4%, while the materials group () dropped 2.9% as shares of gold mining companies lost ground.

Gold () dipped 0.3% to $1,925 an ounce, while the price of oil (), one of Canada’s major exports was down 4.6% at $39.47 a barrel as weak demand figures added to concern over a slow recovery from the COVID-19 pandemic.

Canada added 245,800 jobs in August, the fourth consecutive monthly increase though the pace of new gains slowed, bringing employment within about a million jobs of pre-pandemic levels, Statistics Canada said.

The Canadian dollar was trading 0.4% higher at 1.3068 to the greenback, or 76.52 U.S. cents, as the jobs data added to evidence of economic recovery, with the currency clawing back much of its prior day’s sharp decline.

For the week, the was up 0.2%. On Tuesday, it notched a near eight-month high at 1.2990.

Strategists are growing more bullish on prospects for the Canadian dollar as global economic activity rebounds from the coronavirus crisis, a Reuters poll showed.

Canadian government bond yields were higher across a steeper curve in sympathy with U.S. Treasuries. The 10-year () was up 5.8 basis points at 0.597%, after having hit on Thursday its lowest intraday in more than three weeks at 0.518%.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

About us

InvestLab is a financial services technology company focused on the global trading market. Founded in 2010 in Hong Kong, the company develops trading, market data, and social research products that enable individual investors and small to mid-size brokers to access global markets. We provide brokers and financial institutions cross border capabilities for retail investors into 43 markets globally.