TSX Trips as Miners Weigh

Canada’s main stock index opened lower on Friday, weighed down by miners, after stronger-than-expected jobs data in the United States pushed traders to slash bets on a September rate cut by the Federal Reserve.

The S&P/TSX Composite Index bowed 127.86 points to begin the week’s last session at 22,101.24.

The Canadian dollar took on 0.11 cents at 73.16 cents U.S.

In company news, Canada’s biggest oil sands producers extended their support for a tax on carbon but see a proposed federal oil and gas emissions cap as “unnecessary legislation”, the CEOs of these companies told lawmakers in Ottawa on Thursday.

On the economic front, Statistics Canada reports employment was little changed in May (+27,000; +0.1%), and the unemployment rate moved up to 6.2% from 6.1%.


The TSX Venture Exchange dipped 7.57 points, or 1.3%, to 594.41.

All but two of the 12 subgroups went south in the first hour, weighed most by gold, down 4.2%, materials, off 3.1%, and real-estate, faltering 0.7%.

The two gaining groups proved to be consumer staples, taking on 0.2%, and energy, better by 0.1%.


Stocks fell Friday after a stronger-than-expected May jobs report sent yields higher and dashed hopes the Federal Reserve would cut interest rates soon.

The Dow Jones Industrials gained 40.76 points to 38,926.93.

The S&P 500 slipped 2.32 points to 5,350.64.

The NASDAQ lost 31.31 points to 17,141.81.

All three of the major averages are on pace for a winning week. The Dow has a 0.3% gain, while the S&P 500 is higher by 1.1% and the NASDAQ is on pace for a 2.2% advance.

Chipmaker and artificial intelligence darling Nvidia slipped roughly 1.6%. Technology stocks including Meta Platforms and Alphabet traded marginally lower.

Non-farm payrolls increased by 272,000 in May, above the 190,000 estimate from Dow Jones and April’s 175,000. Average hourly wages increased 0.4% last month and ticked up 4.1% from a year ago. However, even with the job gains the unemployment rate ticked higher to 4%.

Investors had been hoping for weak jobs figures that would give the Fed the green light to cut rates, but not so dim as to indicate a recession.

Prices for the 10-year Treasury fell sharply, raising yields to 4.42% from Thursday’s 4.28%. Treasury prices and yields move in opposite directions.

Oil prices took on 45 cents to $76.00 U.S. a barrel.

Gold prices gave way $64.80 to $2,326.10

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