TSX set for best week since April 2020, jobs data boosts confidence
Updated at 10:31 a.m. ET (1431 GMT
TSX up 0.8%
Canada, U.S. add fewer-than-expected jobs in Oct
Restaurant Brands slips on Q3 revenue miss
Magna raises 2023 profit forecast, shares gain
By Khushi Singh
Nov 3 (Reuters) -Canada's main stock index climbed on Friday after data showed both Canada and the U.S. added fewer-than-expected jobs in October, cementing hopes of central banks ending the rate hike cycle.
At 10:31 a.m. ET (1431 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 153.7 points, or 0.78%, at 19,780.04, on track for its biggest weekly gains since April 2020.
The looniestrengthened after data showed the Canadian economy added fewer-than-expected jobs in October, while the jobless rate rose to a 21-month high of 5.7%.
Similarly, U.S. job growth slowed more than expected in October while wage inflation cooled, pointing to an easing in the labor market.
The softer-than-anticipated jobs report should reinforce expectations that the Bank of Canada and U.S.Federal Reserve may be done raising interest rates, sparking a surge in rate-sensitive stocks.
Real estate .GSPTTRE stocks jumped 2.8%, leading sectoral gains, while financials .SPTTFS added 1.2%.
"Signs of softening in labour markets should increase the odds that the next rate change will (eventually) be a cut," Nathan Janzen, assistant chief economist at Royal Bank of Canada, said in a note.
The materials sector .GSPTTMT, which includes precious and base metals miners and fertilizer companies, gained 2.2% on higher copper prices as the dollar weakened after U.S. jobs data. MET/L
Top decliner energy .SPTTEN index lost 0.6% as oil prices slipped over supply concerns driven by Middle East tensions.
In corporate news, Magna International MG.TO shares moved 14.3% higher to the top of TSX after the auto parts supplier raised its 2023 profit forecast.
Jamieson Wellness JWEL.TO shares climbed 10.8% after the wellness products maker posted higher-than-expected third-quarter results.
Restaurant Brands International QSR.TO missed market estimates for quarterly sales on Friday as still-high inflation pressured consumer spending at its Burger King chain, taking the shares down 4.5%.
Reporting by Khushi Singh; Editing by Tasim Zahid
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.