Daily Wrap-up: Fears of stock market correction as TSX slumps

Fears of stock market correction as TSX slumps... Employment up, unemployment up... TransCanada panel quits...

Steve Randall
Fears of stock market correction as TSX slumps
Stock markets slumped Friday as investors sold equities while bond yields gained. Comments made by Fed speakers today raised expectation that a September interest rate rise could be on the cards.

One analyst, Chuck Self the CIO of iSectors, told CNBC “this might be the beginning of a correction” for the markets.

Every sector of the main TSX index fell with materials down almost 5 per cent. The index was down the most since February.

Wall Street’s main indexes also slumped by between 2.13 and 2.54 per cent; European markets were down 1 per cent and Asian markets closed mostly lower earlier in the session.
The S&P/TSX Composite Index closed down 263.3 (1.78 per cent)
The Dow Jones closed down 394.5 (2.13 per cent)
Oil is trending lower (Brent $47.87, WTI $45.72 at 5.10pm)
Gold is trending lower (1331.20 at 5.10pm)
The loonie is valued at U$0.7671
Employment up, unemployment up
Canada added 26,000 jobs in August but the unemployment rate was also higher.

Statistics Canada reported that a 0.1 per cent rise in jobs with youths and over 55’s gaining and jobs for those in between declining. Over 12 months, jobs rose 77,000 (0.4 per cent) mainly due to part-time roles.

Employment rose in Quebec and in Newfoundland and Labrador, while it declined in New Brunswick. There was little change in the other provinces.
TransCanada panel quits
There will be a further delay in TransCanada’s Energy East pipeline project after the 3-person assessment panel quit. Reuters reports that there were already calls for two of the panel to step down as they had discussed the matter with former Quebec premier Jean Charest who was advising TransCanada.

The National Energy Board said Friday that it was necessary for the panel to leave their roles in order to protect the review process’ integrity.