Canada’s main stock index rose on Thursday, supported by mining stocks, while investors digested mixed U.S. labor market data to assess the extent of U.S. interest rate cut later this month.
The TSX Composite Index surrendered most of its gains, but still bested breakeven 9.49 points to roll into noon hour on Thursday at 23,050.25.
The Canadian dollar let go of 0.03 cents at 74 cents U.S.
In corporate news, Brookfield Asset Management-supported India’s Data Infrastructure Trust raised $941 million via rupee bonds to fund the purchase of American Tower Corp’s (ATC) local assets. BAM shares gained 43 cents, or 1%, to $55.08.
Shares of CIBC rose 67 cents to $80.27 after the Canadian lender named Jon Hountalas vice chair of North American banking on Thursday.
ON BAYSTREET
The TSX Venture Exchange nicked ahead 0.21 points to 552.62.
Eight of the 12 TSX subgroups gained, with gold shining 1.2% brighter, communications up 1.1%, materials stronger 1%.
The four laggards were weighed most by consumer discretionary stocks, down 1.3%, industrials, off 0.9%, and real-estate retreating 0.5%.
ON WALLSTREET
Stocks struggled Thursday as investors dumped risk assets, and concerns mounted over the outlook for the U.S. economy ahead of Friday’s keynote labour report.
The Dow Jones Industrial index tumbled 345.03 points, to stop for lunch hour at 40,629.94.
The S&P 500 reversed 31.28 points to 5,488.79.
The NASDAQ slipped 27.81 points to 17,056.48.
Tesla popped 4% after the electric vehicle maker said it plans to launch its full self-driving software in Europe and China early next year.
Frontier Communications dropped 8% after Verizon said it would buy the company in a $20-billion deal valuing it below Wednesday’s close. Verizon added 0.3%.
Fresh labour market data Thursday sent mixed signals about the health of the U.S. economy as questions linger over whether the Federal Reserve is behind the curve on rate cuts. Private payrolls data showed the weakest growth since 2021, heightening fears of a slowing labour market. However, weekly claims for unemployment benefits declined from the previous week.
The market has shown hypersensitivity to potential growth scares in recent weeks, including Tuesday’s selloff on the heels of weak manufacturing data. That puts heightened scrutiny on labour market data, with all eyes on Friday’s August nonfarm payrolls report. A weak July report released last month spurred recession fears and a raft of volatility in August.
Prices for the 10-year Treasury advanced, lowering yields to 3.75% from Wednesday’s 3.76%. Treasury prices and yields move in opposite directions.
Oil prices gained 70 cents to $69.90 U.S. a barrel.
Gold prices were higher $10.10 to $2,536.10.