The rally in mining companies propelled Canada’s main stock index to a new high on Friday, as worries about a fragile labour market were allayed by an unexpected drop in the country’s unemployment rate.
Canada’s TSX touches record high after strong domestic jobs data
The composite index of the S&P/TSX of the Toronto Stock Exchange. The GSPTSE reached an all-time high of 24,482.62 in the morning session, rising as much as 180.36 points, or 0.74%. The index was scheduled to rise for the fifth week in a row.
Unexpectedly, Canada’s unemployment rate dropped to 6.5% in September, the lowest level in eight months, while the nation added a net 46,700 jobs.
“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.”
Led by a 1.1% increase in materials, at least nine TSX sectors saw gains. Against a weaker dollar, GSPTTMT is tracking increasing gold prices. Additional support came from rising copper prices.
NovaGold Resources Inc. NG.TO, Fortuna Mining Corp. FVI.TO, and Celestica Inc. were the top individual gainers.
But the vitality.SPTTEN and medical treatment. Specifically, GSPTTHC decreased by 0.2% and 0.3%.
Although the statistics alleviated labour market worries, it also made the case against an excessive rate decrease by the Bank of Canada less strong.
Earlier in the day, bets on a 50-basis-point decrease were 51.6%, but now they are 37%, and on a quarter-point cut, they are 63%, up from 48.4%.
In the other direction, September producer prices in the US remained stable, bolstering expectations that the Fed will lower interest rates once more the following month.
The earnings season got underway on Wall Street as big banks including JPMorgan Chase (JPM.N), Wells Fargo (WFC.N), and BlackRock (BLK.N) released impressive quarterly results.
