Canada's main stock index opened higher on Wednesday as U.S. jobs data pointed to an easing labour market, while investors awaited services activity data and minutes from the U.S. Federal Reserve's last policy meeting to infer monetary policy outlook.
The TSX Composite Index popped 270.04 points, or 1.2%, to open Wednesday at 22,223.84.
The Canadian dollar took on 0.25 cents to 73.36 cents U.S.
In corporate news, Lundin Mining said it completed the transaction to increase its ownership in the Chile-based Caserones copper-molybdenum mine to 70%. Shares in Lundin shares rocketed 82 cents, or 5.5%, to $15.78.
On the economic stage, Statistics Canada said in May, Canada's merchandise exports decreased 2.6%, while imports were down 1.6%. As a result, Canada's merchandise trade deficit with the world widened from $1.3 billion in April to $1.9 billion in May. This represents a third consecutive monthly deficit.
ON BAYSTREET
The TSX Venture Exchange restored 7.7 points, or 1.4%, to 574.46
All 12 TSX subgroups were in the green, as materials and gold strengthened 3% each, while utilities claimed 1.3%.
ON WALLSTREET
Stocks traded near flat in Wednesday’s shortened trading session following muted labour data.
The Dow Jones Industrials acquired but 25.53 points to open Wednesday at 39,357.38.
The S&P 500 index edged up 8.71 points to 5,517.76.
The NASDAQ gained 32.64 points to 18,061.40.
Paramount Global shares popped 10%. That follows reports from The Wall Street Journal and The New York Times that Skydance Media has reached a preliminary agreement to buy National Amusements, the entertainment giant’s controlling shareholder.
Tesla rose more than 3%, continuing to rally after a better-than-expected deliveries report. This put the electric vehicle maker’s stock on track for its seventh straight positive session, which would be its longest winning streak of 2024.
Investors parsed stats released Wednesday morning showing softening in the labor market ahead of Friday’s all-important jobs report. ADP data showed less private payroll growth than expected in June, while weekly jobless claims numbers came in higher than economists forecast.
Trading volume is likely to be light on Wednesday with the New York Stock Exchange closing early at 1 p.m. ET. The exchange will be shut on Thursday for Independence Day.
Minutes from the policy-setting Federal Open Market Committee’s June meeting will be posted an hour after Wednesday’s closing bell.
Prices for the 10-year Treasury gained lots of ground, lowering yields to 4.34% from Tuesday’s 4.43%. Treasury prices and yields move in opposite directions.
Oil prices regained 42 cents at $83.23 U.S. a barrel.
Gold prices strengthened $39.20 to $2,372.60
