Equities, commodities gain on US jobs data
Friday’s session started out with caution ahead of the US jobs data and declining oil prices; but ended with gains for the equity markets and commodities.
The main TSX index closed almost 1 per cent higher as the US reported an additional 287,000 jobs in June, beating expectations and allaying some fears of a weak economy south of the border. The gains for 5 of the 10 main sectors on the TSX came despite weaker domestic jobs data.
Wall Street loved the US data with the three main indexes closing around 1.5 per cent higher; Europe was also boosted to strong gains across the board; Asian indexes closed before the jobs data and were mostly lower.
Commodities were also boosted by the jobs data with oil, gold and silver among those with price rises.
The S&P/TSX Composite Index closed up 125.4 (0.89 per cent)
The Dow Jones closed up 250.9 (1.40 per cent)
Oil is trending higher (Brent $46.61, WTI $45.21 at 4.30pm)
Gold is trending higher (1367.50 at 4.30pm)
The loonie is valued at U$0.7666
Canadian labour market sees smallest quarterly gain in 2 years
There was no change in the Canadian labour market in June with Statistics Canada reporting a decline in jobs for men aged 55+ but gains for 15 to 24 year olds. There was growth for jobs in BC while other provinces saw no real change.
The quarterly gain for the second-quarter was just 11,000 making the smallest 3-month rise for 2 years. Over the year to June there were 108,000 jobs added (0.6 per cent rise) with most of them in part-time roles (77,000).
The unemployment rate declined 0.1 percentage points to 6.8 per cent, as the number of people searching for work edged down.
Find manager says Vancouver housing market is crashing already
Fund manager David LePoidevin says the Vancouver real estate market may already be crashing.
The boss of the LePoidevin Group believes that his fund’s strategy of shorting some banks and non-bank mortgage lenders but not investing in the sector will prove to be a canny move with home sales in Vancouver slowing, even on the west side where supply is growing.
Although figures from the provincial government adds doubt to the impact of foreign buyers in the Vancouver market, LePoidevin told the HuffPost Canada: "I think the evidence now is that, we underestimated the amount of foreign capital that would come directly out of China ... to Vancouver."
More market talk: