Canada's main stock index opened subdued on Thursday after a softer-than-expected U.S. private payrolls report, while investors awaited domestic employment data that could influence the Bank of Canada's September interest-rate decision.
The TSX Composite Index gained 47.45 points to begin Thursday trading at 28,798.81.
The Canadian dollar sagged 0.11 cents to 72.39 cents U.S.
On the macroeconomic scene, Statistics Canada reported Canada's merchandise exports rose 0.9% in July, while imports were down 0.7%. As a result, Canada's merchandise trade deficit with the world narrowed from $6.0 billion in June to $4.9 billion in July.
ON BAYSTREET
The TSX Venture Exchange lost 8.8 points to 838.27.
Eight of the 12 TSX subgroups moved north in the first hour, with telecoms soaring 1%, information technology up 0.7%, and utilities better by 0.5%.
The four laggards were weighed most by gold and energy, retreating 0.6% each, and materials, sliding 0.5%.
ON WALLSTREET
The S&P 500 was relatively unchanged on Thursday as weak private payrolls data raised the stakes for Friday’s official jobs report. A big drop Salesforce weighed on the Dow.
The Dow Jones Industrials recovered 37.71 points to start Thursday at 45,308.94, restrained by a 7% fall in Salesforce shares on the heels of the software company posting a disappointing revenue outlook.
The much-broader index nudged up seven points to 6,455.26
The NASDAQ gained 15.38 points to 21,513.11.
The ADP private payrolls report showed an increase of 54,000 in August. Economists polled by Dow Jones had expected private employers to add 75,000 jobs. The figure is also less than the revised 106,000 in July.
The reaction was limited as investors reasoned that the recent ADP data was weak enough for the Federal Reserve to justify a September rate cut, but not soft enough to herald a recession.
Traders increased their bets that the central bank would cut on Sept. 17, with fed funds futures trading following ADP’s report now indicating a 97.6% chance of a rate cut. That’s up from 96.6% a day ago.
Jobless claims for the week ended Aug. 30 also increased to 237,000. That number came in above estimates and marked an 8,000 gain from the prior week, providing more evidence of slowing in the labor market.
Meanwhile, August’s ISM non-manufacturing PMI reading came in at 52.0, slightly better than the Dow Jones forecast for 50.8.
Those reports come ahead of Friday’s big jobs report, which is expected to post a 75,000 non-farm-payroll gain for last month, according to economists polled by Dow Jones.
Traders are also turning their eyes to Washington for the latest on trade, after President Donald Trump asked the Supreme Court to quickly rule on an appeal that would overturn lower court decisions that deemed most tariffs illegal.
Prices for 10-year Treasury registered higher Thursday, pushing down yields to 4.19% from Wednesday’s 4.22%. Treasury prices and yields move in opposite directions.
Oil prices dwindled 84 cents to $63.13 U.S. a barrel.
Gold prices flopped $31.10 at $3,604.40 U.S. an ounce.
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