Equities in Canada’s largest market on Friday as North American jobs data supported expectations of interest rate hikes in Canada and the United States, while higher bond yields and a slide in oil prices added to investors' retreat from riskier assets.
The S&P/TSX Composite Index plummeted 121.42 points – a 7 ½-month low -- to reach noon ET at 14,956.58
The Canadian dollar surged 0.6 cents to 77.66 cents U.S.
The price of gold, which has shed about 6% since touching a seven-month peak in early June, hit a two-month low on Friday amid the increasing likelihood of another U.S. rate hike.
Among gold stocks, Barrick Gold eased 1.6% to $20.01, while Goldcorp fell 2.8% to $16.14.
Energy stocks also took it on the chin, as Canadian Natural Resources fell 2% to $36.12. Encana Corp shares declined 4.4% to $10.56.
Paramount Resources tumbled 5.4% to $17.73 after it said late on Thursday it would buy the Canadian subsidiary of U.S. oil and gas company Apache Corp for $459.5 million. Separately, Paramount also said it would buy Trilogy Energy Corp.
On the economic slate, Statistics Canada reported the economy created 45,000 jobs in June, bringing the unemployment rate down 0.1 percentage points to 6.5%.
Employment rose by 45,000 in June, mostly in part-time work. The unemployment rate was 6.5%, down 0.1 percentage points from the previous month.
Also, Western University’s IVEY Purchasing Managers’ Index ballooned to 61.6 for June from 53.8 in May, and 51.7 in June 2016. Any reading over 50 indicates purchasing managers are increasing their purchases.
ON BAYSTREET
The TSX Venture Exchange slumped 6.43 points to greet noon at 753.4.
All but one of the 12 TSX subgroups were lower midday, as gold stepped back 2.8%, energy tumbled 2.3%, and materials slouched 2.2%
Only information technology registered a positive showing, up 0.5%.
ON WALLSTREET
U.S. stocks traded higher on Friday on the back of stronger-than-expected employment data.
The Dow Jones Industrials climbed 85.34 points to pause for lunch at 21,405.38, with McDonald's contributing the most gains.
The S&P 500 gained 13.82 points to 2,423.57, with information technology leading advancers.
The NASDAQ grew 59.3 points to 6,148.76.
Entering Friday's session, the three major indexes were on track for weekly losses as tech stocks have fallen on the back of rising interest rates. Tech has been the best-performing sector this year, rising 15.6%.
Heading into next week, investors will watch out for releases of major quarterly reports. Citigroup, Wells Fargo and JPMorgan Chase are all scheduled to report second-quarter results.
The U.S. Labor Department said the economy added 222,000 jobs in June. Economists expected an increase of 179,000. The unemployment rate ticked higher to 4.4% from 4.3%. Wage growth — which is viewed as a measure of inflation — rose by just 0.2%, however.
Prices for the benchmark 10-year Treasury note lost strength, raising yields to 2.39% from Thursday’s 2.37%. Treasury prices and yields move in opposite directions.
Oil prices gave back $1.40 to $44.12 U.S. a barrel
Gold prices dulled $14.90 to $1,208.40 U.S. an ounce.
