Canadian Stocks Are Down After Weak Jobs Report - Canadian Commentary

Shutterstock photo

(RTTNews.com) - The Canadian stock market opened lower Friday, following the release of the weaker than expected Canadian employment report. The weak performance of the energy sector is also weighing on the overall market this morning.

A report from Statistics Canada this morning showed that the Canadian employment dropped by 51,600 jobs in August. Economists had expected an increase of 5,000 jobs. The unemployment rate also climbed to 6.0 percent from 5.8 percent in July.

Markets on Wall Street got off to a weak start Friday, but have since pared their early losses.

After reporting weaker than expected job growth in the previous month, the Labor Department released a report on Friday showing employment in the U.S. jumped by more than expected in the month of August. The Labor Department said non-farm payroll employment surged up by 201,000 jobs in August after climbing by a downwardly revised 147,000 jobs in July.

Economists had expected employment to increase by about 191,000 jobs compared to the addition of 157,000 jobs originally reported for the previous month.

Despite the stronger than expected job growth during the month, the unemployment rate held at 3.9 percent in August compared to expectations for a drop to 3.8 percent.

The majority of the European markets are trading modestly to the downside Friday.

The benchmark S&P/TSX Composite Index is down 55.88 points or 0.35 percent at 16,045.06.

On Thursday, the index closed down by 36.63 points or 0.23 percent, at 16,100.94. The index scaled an intraday high of 16,196.18 and a low of 16,077.40.

The Energy Index is falling 1.36 percent. Crescent Point Energy (CPG.TO) is declining 1.71 percent and Suncor Energy (SU.TO) is lower by 1.12 percent. Encana (ECA.TO) is down 1.46 percent and Husky Energy (HSE.TO) is surrendering 1.11 percent. Imperial Oil (IMO.TO) is weakening by 2.25 percent and Canadian Natural Resources (CNQ.TO) is dropping 2.37 percent. Cenovus Energy (CVE.TO) is forfeiting 1.72 percent and Enbridge (ENB.TO) is losing 1.07 percent.

The Capped Telecommunication Services Index is down 0.66 percent. BCE Inc. (BCE.TO) is losing 0.32 percent and TELUS (T.TO) is weakening by 0.52 percent.

The heavyweight Financial Index is decreasing 0.36 percent. Bank of Montreal (BMO.TO) is lower by 0.60 percent and Canadian Imperial Bank of Commerce (CM.TO) is down 0.27 percent. Toronto-Dominion Bank (TD.TO) is dipping 0.09 percent and Bank of Nova Scotia (BNS.TO) is weakening by 0.45 percent. Royal Bank of Canada (RY.TO) is falling 0.41 percent.

The Capped Information Technology Index is gaining 0.87 percent. Constellation Software (CSU.TO) is up 0.09 percent and Descartes Systems Group (DSG.TO) is climbing 0.90 percent. BlackBerry (BB.TO) is rising 1.78 percent and Sierra Wireless (SW.TO) is increasing 3.44 percent.

Hydro One Limited (H.TO) is rising 0.63 percent after it announced that Tom Woods has been appointed as the new Chair in a unanimous vote by the company's Board of Directors. The company also said that Chris Lopez has been appointed as Acting Chief Financial Officer and that Paul Dobson will continue as Acting President and Chief Executive Officer.

Pembina Pipeline Corporation (PPL.TO) is falling 1.15 percent after it announced that its Board of Directors declared a common share cash dividend for September 2018 of $0.19 per share to be paid on October 15, 2018 to shareholders of record on September 25, 2018.

Enghouse Systems Limited (ENGH.TO) is climbing 4.28 percent after it reported third quarter revenue of $86.7 million, up from $82.8 million in the third quarter of the prior year. Income from operating activities increased to $26.7 million, from $22.6 million in the prior year's third quarter, an increase of 18.1%.

On the economic front, the euro area economy expanded as initially estimated in the second quarter, data from Eurostat showed Friday. Gross domestic product climbed 0.4 percent sequentially, the same rate as seen in the first quarter and in line with preliminary estimate.

Germany's industrial production declined unexpectedly in July, data from Destatis revealed Friday. Industrial production fell 1.1 percent month-on-month in July, in contrast to a 0.2 percent rise economists had forecast. Production decreased 0.7 percent in June.

Germany's exports declined for the first time in three months in July, while imports grew at a faster pace, Destatis reported Friday.

Exports fell unexpectedly 0.9 percent on month in July, reversing June's 0.1 percent rise. This was the first fall in three months. Shipments were expected to climb 0.3 percent.

Meanwhile, monthly growth in imports accelerated to 2.8 percent from 1.3 percent in June. Economists had forecast a 0.1 percent rise in imports.

As a result, the trade surplus fell to a seasonally adjusted EUR 15.8 billion from EUR 19.3 billion in the previous month.

France's industrial production logged a steady growth in July, the statistical office Insee showed Friday. Industrial output grew 0.7 percent month-on-month in July, the same pace of expansion as seen in June. Output was forecast to gain at a much weaker rate of 0.2 percent.

France's visible trade deficit for July narrowed from a year ago, figures from the Customs Service showed Friday. The trade gap shrunk to EUR 3.49 billion from EUR 6.00 billion in the same month last year. Economists had forecast a shortfall of EUR 5.73 billion.

UK house prices rose at a marginal pace in August, data from the Lloyds bank subsidiary Halifax and IHS Markit showed Friday. House prices gained 0.1 percent month-on-month in August, slower than July's 1.2 percent increase.

In commodities, crude oil futures for October delivery are down 0.55 or 0.81 percent at $67.22 a barrel.

Natural gas for October is down 0.005 or 0.18 percent at $2.767 per million btu.

Gold futures for December are down 1.50 or 0.12 percent at $1,202.80 an ounce.

Silver for December is up 0.074 or 0.52 percent at $14.255 an ounce.

Read the original article on RTTNews (http://www.rttnews.com/2933124/canadian-stocks-are-down-after-weak-jobs-report-canadian-commentary.aspx)

For comments and feedback: contact editorial@rttnews.com

This article appears in: 401k , Insurance , Banking and Loans , Economy , Oil , Retirement
Referenced Symbols: BCE ,

More from RTT News


See All RTT news

Research Brokers before you trade

Want to trade FX?