Equities in Canada opened lower on Friday dragged down by technology and material stocks after higher-than-expected growth in domestic and U.S. jobs data reinforced expectations of aggressive interest rate hikes by central banks.
The TSX Composite dropped 232.01 points, or 1.2%, to start the last session before a long weekend at 18,747.
The Canadian dollar restocked 0.18 cents to 72.94 cents U.S.
On the economic slate, Statistics Canada says employment grew but 21,000 in September. The unemployment rate fell 0.2 percentage points to 5.2% as fewer people searched for work.
Elsewhere, Danielle Smith was elected leader of the ruling United Conservative Party in Canada's oil-rich Alberta province on Thursday, after running on promises of greater autonomy, in particular pushing back against federal government policies.
ON BAYSTREET
The TSX Venture Exchange slipped 6.19 points, or 1%, to 615.69.
All but one of the 12 TSX subgroups were in the red in the first hour, with health-care faltering 6.6%, gold dimming 2.9%, and materials lower by 2.8%.
Energy proved the lone gainer, picking up 0.4%.
ON WALLSTREET
Stocks fell on Friday morning as traders evaluated September’s jobs report, which showed the unemployment rate continuing to decline and sparked an increase in interest rates.
The Dow Jones Industrials dumped 440.75 points, or 1.5%, to start Friday at 29,486.19.
The S&P 500 plummeted 73.84 points, or 2%, to 3,671.45.
The NASDAQ Composite faded 286.55 points, or 2.6%, to 10,786.77.
Friday’s jobs numbers showed the U.S. economy added 263,000 jobs in September, slightly below a Dow Jones estimate of 275,000.
However, the unemployment rate came in at 3.5%, down from the 3.7% in the previous month in a sign that the jobs picture continues to strengthen even as the Federal Reserve tries to slow the economy with rate hikes to stem inflation.
Advanced Micro Devices’ stock fell after the chipmaker warned its third-quarter revenue would be lower than anticipated. Levi Strauss shares slipped following a cut to its guidance.
Major averages closed lower during Thursday trading but are on pace for an up week. The Dow and S&P are each set to end the week about 3% higher, while Nasdaq is on pace to rise 2%.
Treasury prices stumbled, lifting yields to 3.89% from Thursday’s 3.82%. Treasury prices and yields move in opposite direction.
Oil prices surged $2.36 to $90.81 U.S. a barrel.
Gold prices settled $13.70 to $1,707.10 U.S. an ounce.
