© Reuters. FILE PHOTO: The Art Deco facade of the original Toronto Stock Exchange building is seen on Bay Street in Toronto, Ontario, Canada January 23, 2019. REUTERS/Chris Helgren/File Photo
By Johann M Cherian
(Reuters) – Canada’s main stock index fell on Friday, after data showed that the country’s economy had added more-than-anticipated jobs in November, while material stocks further weighed on sentiment.
At 10:23 a.m. ET (15:23 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was down 70.64 points, or 0.34%, at 20,452, and is on pace to end the week lower.
Canada added 10,100 jobs in November, against a forecast of a gain of 5,000, while the jobless rate fell to 5.1%, Statistics Canada said, in a tepid report that may bolster the chances for a normal-sized interest rate increase next week.
“We’re still in a mood where the market looks at good news as bad, because the data still shows that the Bank of Canada (BoC) can still be aggressive,” said Greg Taylor, portfolio manager at Purpose Investments.
Traders see a 75% chance of a 25-basis-point rate hike by the BoC next week, down from 84% before the data was published.
The materials sector fell 1.2% tracking bullion prices that dipped after a strong U.S. jobs data rekindled worries of an aggressive Federal Reserve. [GOL/]
This week was a cocktail of economic data iced with mixed bank earnings, as markets enter into the holiday season.
“We’ve had a good bounce through November and the last few weeks, but there is some concern heading into the new year. The big fear and debate is all about whether the economic data is starting to point to a recession coming in 2023,” Taylor added.
Among stocks, Canadian Imperial Bank of Commerce (CIBC) fell 1.1% after the lender said it would appeal a New York court’s ruling in a lawsuit concerning payments defaults against the bank by Cerberus Capital Management.
Canada’s largest pension fund CPP Investments reported in a Reuters exclusive report that it is set to raise $372 million in its first “reverse inquiry” bond on Dec. 9, where lenders Royal Bank of Canada and CIBC would be the underwriters to the offer. RBC was down 0.3%.
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