Canada Stocks: TSX touches record high after strong domestic jobs data

Fortuna Mining

11/10/2024 16:09

(Updated at 10:08 a.m. ET/ 1408 GMT)
    By Nikhil Sharma
       Oct 11 (Reuters) - Canada's main stock index hit a
record high on Friday led by gains in mining stocks, while a
surprise decline in domestic unemployment rate assuaged concerns
about a weak labor market.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  rose as much as 180.36 points, or 0.74%, in morning
trade to touch an all-time high of 24,482.62. The index was set
for its fifth consecutive weekly rise.
    Canada's unemployment rate unexpectedly fell for the first
time in 8 months to 6.5%, while the country added a net 46,700
jobs in September.
    "Overall, most of those jobs were full-time jobs, which is
always viewed as higher quality in terms of job growth," said
Chris McHaney, head of investment management and strategy at
Global X.
    "I think markets overall are seeing that as a positive."
    At least nine sectors on the TSX gained, led by a 1.1% rise
in materials  .GSPTTMT  tracking higher gold prices against a
soft dollar. A rise in copper prices also lent support.  GOL/ 
 MET/L 
    Top individual gainers were NovaGold Resources Inc​  NG.TO ,
Fortuna Mining Corp​  FVI.TO  and Celestica Inc  CLS.TO​ , that
rose between 2.9% to 3.7%.
    However, the energy  .SPTTEN  and healthcare  .GSPTTHC  fell
0.2% and 0.3%, respectively.  O/R 
    While the data allayed concerns about the labor market, it
also weakened the case for an outsized rate cut by the Bank of
Canada.
    Bets for a 50-basis-point cut have now reduced to 37% from
51.6% earlier in the day, while those for a quarter-point cut
have increased to 63% from 48.4%.  0#BOCWATCH 
    Across the border, U.S. producer prices were unchanged in
September, supporting views that the Fed would cut interest
rates again next month.
    Wall Street kick-started the earnings season, with major
financial institutions like JPMorgan Chase  JPM.N , Wells Fargo
 WFC.N , and BlackRock's  BLK.N  reporting strong quarterly
results.
 

 (Reporting by Nikhil Sharma in Bengaluru; Editing by Leroy Leo)
 ((Nikhil.Sharma@thomsonreuters.com))