Daily Wrap-up: TSX closes lower despite gain for materials

Daily Wrap-up: TSX closes lower despite gain for materials

Daily Wrap-up: TSX closes lower despite gain for materials TSX closes lower despite gain for materials
Materials producers’ stocks rose Friday as gold prices rebounded following US jobs data but the rise for the sector (and a slim gain for IT) was not enough to offset losses from the other 8 sectors with telecoms the largest drag. The main TSX index closed lower and was also down over the week.

Oil prices ended the session lower but was 3.3 per cent higher than it began the week.

Wall Street also slipped as officials announced that 156,000 new jobs were created in September, compared to the 176,000 expected; and unemployment rose from 4.9 per cent to 5.0 per cent when a hold-steady was expected.

Asian markets had closed lower earlier in the session following a flash crash for the UK pound overnight. European indexes also closed with losses with the exception of London’s FTSE.
 
The S&P/TSX Composite Index closed down 29.24 (0.20 per cent)
The Dow Jones closed down 28.01 (0.15 per cent)
Oil is trending lower (Brent $51.68, WTI $49.58 at 4.32pm)
Gold is trending higher (1257.50pm)
The loonie is valued at U$0.7536
 
Canadian jobs up in September, hiring intentions rise
There was a net gain of 67,000 jobs in Canada in September but the 0.4 per cent rise was mostly self-employed and part-tie roles. Statistics Canada reported Friday that the unemployment rate was unchanged at 7 per cent as more people participated in the labour market.

New jobs included 50,000 self-employed roles, mainly in healthcare and social assistance, professional and technical services. Over 55’s made up most of the gains with the number of under 55’s largely unchanged.

Employment rose in Quebec, Alberta and New Brunswick. There was little change in the other provinces.

Over the past 12 months, there was a 0.8 per cent rise in employment (139,000) with part-time making up most of the gains.

Meanwhile, the latest business outlook survey from the Bank of Canada revealed that hiring intentions increased from recent polls with almost half of companies responding that they intend to take on new workers in the next 12 months.

Business investment intentions are also higher.
 
Ottawa’s new mortgage rules could mean higher rates
The newly announced tightening of mortgage lending rules could mean higher rates for homeowners. That’s because it could make it harder for non-bank lenders which would give banks less competition.

The founder of RateHub, James Laird, told Global News: “The non-bank lenders keep the banks honest. It is really important that we keep some sort of third-party pressure on them so they can’t set prices at whatever they choose.”