Equities in Canada’s largest market snapped a two-day rising streak and fell on Thursday, tracking weak oil and crude prices, while disappointing U.S. private employment data added to fears about the Federal Reserve keeping rates higher for longer.
The TSX wilted 185.26 points to open Thursday at 19,403.57.
The Canadian dollar dwindled 0.34 cents at 73.81 cents U.S.
Energy stocks gained for a change, with Headwater Exploration climbing 11 cents, or 2.1%, to $5.47, and Tamarack Valley Energy, advancing six cents, or 1.5%, to $4.16.
Tech stocks stumbled, as HUT 8 Mining collapsed five cents, or 3.9%, to $1.25, while Shopify lost $1.90, or 3.8%, to $48.71.
On the economic slate, Statistics Canada reported our international merchandise trade decreased 2.3% in November, while imports were down 2.1%. As a result, Canada’s merchandise trade balance with the world went from a surplus of $130 million in October to a deficit of $41 million in November.
ON BAYSTREET
The TSX Venture Exchange slid 4.88 points to 568.18.
All but one of the 12 subgroups were in the red during Thursday’s first hour, with information technology swooning 2.4%, health-care falling 1.9%, and utilities off 1.2%.
Energy, in a reversal of roles, proved the lone gainer, picking up 0.3%.
ON WALLSTREET
Stocks fell Thursday after jobs data showed the labour market is still strong amid the Federal Reserve’s interest rate hikes to tame inflation.
The Dow Jones Industrials weakened 301.42 points to open Thursday at 32,968.51
The S&P 500 slumped 35.49 points at 3,817.48
The NASDAQ Composite Index slouched 102.58 points to 10,356.18, led by shares of Tesla down 4.4%.
Stocks opened lower after the ADP private payrolls report showed that employers added 235,000 jobs in December, well above economist estimates. Wages also increased more than anticipated, another sign that the labour market remains hot. Later in the morning, weekly jobless claims came in below expectations and showed a drop in continuing claims.
On Friday, investors will review the December jobs report for updated data on employment and hourly wages. Since the report could have a big impact on the Fed’s next moves, it has the potential to impact the market. Investors don’t want to see big gains in wage growth, which could signal higher inflation.
Prices for the 10-year Treasury fell, raising yields to 3.77% from Wednesday’s 3.68%. Treasury prices and yields move in opposite directions.
Oil prices advanced 42 cents to $73.26 U.S. a barrel.
Gold prices dulled $20.70 to $1,838.30 U.S. an ounce.