Stocks in Toronto fell broadly on Friday as mixed employment data provided little clarity for investors hoping to receive more guidance ahead of this month's central bank monetary policy meetings on both sides of the border.
The S&P/TSX composite index capsized 107.92 points – though off their lows of the morning -- to greet noon at 13,488.49
The Canadian dollar faded 0.51 cents to 75.35 cents U.S.
Markets in North America will be closed Monday for Labour Day.
The biggest drags on the index were Royal Bank of Canada, which fell 1.7% to $70.76, and Toronto-Dominion Bank, which declined 1.6% to $50.98.
Despite less volatility in crude prices on Friday, energy stocks were also performing poorly. Canadian Natural Resources was down 2.9% at $27.51.
In corporate news, BlackBerry Ltd said it will buy rival mobile software provider Good Technology Corp for $425 million. Shares were up 1.6% to $10.02.
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 0.74 points to at 553.01
All but two of the 14 TSX subgroups were lower midday, as metals and mining fell 4.6%, global base metals weakened 3%, and gold dulled in price 1.5%.
The two gainers were health-care, up 0.7%, and information technology, ahead 0.4%.
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 moved sharply lower 254.61 points, or 1.6%, to 16,120.15. Goldman Sachs and JPMorgan Chase were the greatest decliners in the Dow
The S&P 500 shed 28.21 points, or 1.5%, to 1,922.22. Financials declined more than 1.5% to lead all 10 S&P 500 sectors lower.
The NASDAQ index faltered 43.67 points to 4,689.82.
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 up, lowering yields to 2.13% from Wednesday’s 2.16%. Treasury prices and yields move in opposite directions.
Oil prices lost 35 cents a barrel to $46.40 U.S.
Gold prices slid $3.30 to $1,121.20 U.S. an ounce.
