Canada’s main stock index reversed course on Friday as gains in energy stocks offset a downturn in technology shares, after stronger-than-expected jobs data heightened worries the Bank of Canada might maintain higher interest rates.
The TSX gained 10.68 points to move into noon hour Friday at 20,142.76.
The Canadian dollar surged 0.33 cents at 73.4 cents U.S.
Bank of Canada Governor Tiff Macklem said on Thursday interest rates may not be high enough to bring inflation back down to target, a day after the BoC held borrowing costs at a 22-year high.
Rogers Communications said on Thursday it was pricing in a $3-billion bond offering to repay short-term debt and other borrowings. Rogers shares docked 51 cents, or 1%, to $53.38.
Among energy stocks that shone, oilfield services firm Precision Drilling gained $4.07, or 4.3%, to $98.00, after at least four brokerages raised their price targets on the stock.
In the economic docket, Statistics Canada says the economy created 40,000 jobs in August, though the rise had no effect on the unemployment rate, which remained at 5.5%, following three consecutive monthly increases in May, June and July.
ON BAYSTREET
The TSX Venture Exchange sank 0.16 points to 585.39.
The 12 TSX subgroups were evenly split as morning became afternoon, gainers led by health-care, up 1.2%, energy better by 0.9%, and consumer staples, up 0.7%.
The half-dozen laggards were weighed most by information technology, down 0.8%, while communications and real-estate each slid 0.4%.
ON WALLSTREET
The S&P 500 rose on Friday, but Wall Street headed for a losing week amid concern that the Federal Reserve could raise rates more than expected.
The Dow Jones Industrials advanced 83.5 points to reach noon hour EDT at 34,584.23.
The much-broader index moved ahead 14.31 points to 4,465.45.
The NASDAQ index grabbed 56.66 points to 13,805.49.
Stocks are headed for a down week. The Dow has dropped 0.9% and S&P 500 has slumped 1.2%, while the NASDAQ lost 1.6%.
Recent economic data, including lower-than-expected initial jobless claims, have reignited rate hike fears and concerns that the Federal Reserve may have more work ahead.
Prices for the 10-year Treasury gave up previous gains, raising yields back to Thursday’s 4.25%. Treasury prices and yields move in opposite directions.
Oil prices recovered 72 cents to $87.59 U.S. a barrel.
Gold prices climbed $1.10 to $1,943.60 U.S. an ounce.