Equity markets in Canada’s biggest centre opened sharply lower on Friday, tracking global equity market declines, with broad losses across most sectors led by a more than 1% decline in banking, energy and mining stocks.
The S&P/TSX composite index capsized 112.37 points to begin Friday trading at 13,484.04
The Canadian dollar faded 0.43 cents to 75.44 cents U.S.
Markets in North America will be closed Monday for Labour Day.
CIBC cut the target price on Canadian Western Bank to $27.00 from $28.00 following the bank’s weaker-than-expected third-quarter earnings.
Shares in Canadian Western fell 66 cents, or 2.8%, to start the day at $22.62.
Canaccord Genuity raised the price target on Labrador Iron Ore Royalty to $18.00 from $15.00 after analysts’ increased their 2016 EPS and EBITDA forecasts by 23% on higher production and lower cost forecasts.
Labrador Iron Ore shares gathered 14 cents, or nearly a full percentage point, to $14.87.
CIBC cut the target price on Pembina Pipeline to $46.00 to from $47.00 reflect issue of common shares to finance the redemption of Series C and Series E convertible debentures announced on Aug 27.
Pembina stock faded 17 cents a share to $35.10.
On the economic beat, Statistics Canada reported that the economy created 12,000 jobs in August, with the unemployment rate increased 0.2 percentage points to 7.0%, as more people searched for work. Prior to August, the unemployment rate had held steady at 6.8% for six consecutive months.
Moreover, Western University in London, Ontario reported this morning its IVEY Purchasing Managers Index for August stood at 58.0, compared to PMI figure 52.9 in July, and 50.9 for August 2014.
The index polls purchasing managers of companies as to whether their expenditures were higher, lower or the same month than the previous month. Any reading over 50 suggests expansion; under 50, contraction.
ON BAYSTREET
The TSX Venture Exchange docked 0.84 points to at 552.91
All but one of the 14 TSX subgroups were lower in the first hour, as metals and mining fell 2.9%, global base metals weakened 2.2%, and energy was 1.4% less energetic.
Only information technology stocks held out against the negative tide, poking up 0.2%.
ON WALLSTREET
U.S. stocks traded sharply lower Friday ahead of the long weekend as investors digested a key jobs report that could provide the Federal Reserve with enough support to raise rates as early as September.
The Dow Jones industrial average hurtled earthward 233.33 points, or 1.4%, to 16,141.43, as Goldman Sachs and IBM were the greatest weights on the blue chip index.
The S&P 500 shed 30.21 points to 1,920.92, temporarily joining the NASDAQ composite and Dow in correction territory.
The NASDAQ index faltered 58.06 points to 4,675.44.
The report showed that 173,000 jobs were created, missing expectations of 220,000. The unemployment fell more than expected to 5.1%, while average hourly wages increased more than expected by 0.3%, for a 2.2% gain over the past 12 months.
Prices for 10-year U.S. Treasuries were unchanged, keeping yields to 2.16% from Wednesday’s 2.16%. Treasury prices and yields move in opposite directions.
Oil prices lost 52 cents a barrel to $46.23 U.S.
Gold prices slid $4.20 to $1,120.30 U.S. an ounce.
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