Toronto Stock Exchange index rose on Friday and was set to record its first weekly gain in four, as energy stocks jumped on higher oil prices, while a surge in employment numbers to pre-pandemic levels signalled a strong economic recovery.
The Canadian economy posted a massive jobs gain in September, putting inflation back to pre-pandemic levels, and the unemployment rate hit an 18-month low, Statistics Canadadata indicated on Friday. [L1N2R40XT]
At 10:11 a.m. ET (14:11 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 79.97, or 0.39%, at 20,496.18.
Canada‘s energy index jumped nearly 2% to its highest since May 2019 and was set to record its fourth straight weekly gains on soaring energy prices. [O/R]
“I don’t think the central bank is going to move too quickly to hike rates as there is still some recovery left and with the pull back of asset purchases well seeped in, the better-than-expected employment data gives a positive outlook for equity markets,” said Mike Archibald, portfolio manager at AGF Investments.
The Canadian equity index has gained 17.4% so far this year on ecomomic recovery hopes and re-opening optimism, but the pace of gains have recently lost steam due to concerns around higher inflation which could derail global economic growth.
Data showed U.S. employment increasing far less than expected in September amid a decline in government payrolls.
Investors weigh a more uncertain outlook for the strength of the U.S. economic rebound against what the jobs growth slowdown means for the Federal Reserve’s expected announcement in November of a tapering of its asset purchases. [MKTS/GLOB]
HIGHLIGHTS
On the TSX, 164 issues were higher, while 67 issues declined for a 2.45-to-1 ratio favouring gainers, with 36.50 million shares traded.
Endeavour Silver Corp <EDR.TO>, and Birchcliff Energy <BIR.TO>, were the largest percentage gainers on the TSX.
The TSX posted 11 new 52-week highs and three new lows.
Across all Canadian issues there were 51 new 52-week highs and 25 new lows, with total volume of 69.52 million shares.
(Reporting by Shashank Nayar in Bengaluru; Editing by Rashmi Aich)
OTTAWA – The parliamentary budget officer says the federal government likely failed to keep its deficit below its promised $40 billion cap in the last fiscal year.
However the PBO also projects in its latest economic and fiscal outlook today that weak economic growth this year will begin to rebound in 2025.
The budget watchdog estimates in its report that the federal government posted a $46.8 billion deficit for the 2023-24 fiscal year.
Finance Minister Chrystia Freeland pledged a year ago to keep the deficit capped at $40 billion and in her spring budget said the deficit for 2023-24 stayed in line with that promise.
The final tally of the last year’s deficit will be confirmed when the government publishes its annual public accounts report this fall.
The PBO says economic growth will remain tepid this year but will rebound in 2025 as the Bank of Canada’s interest rate cuts stimulate spending and business investment.
This report by The Canadian Press was first published Oct. 17, 2024.
OTTAWA – Statistics Canada says the level of food insecurity increased in 2022 as inflation hit peak levels.
In a report using data from the Canadian community health survey, the agency says 15.6 per cent of households experienced some level of food insecurity in 2022 after being relatively stable from 2017 to 2021.
The reading was up from 9.6 per cent in 2017 and 11.6 per cent in 2018.
Statistics Canada says the prevalence of household food insecurity was slightly lower and stable during the pandemic years as it fell to 8.5 per cent in the fall of 2020 and 9.1 per cent in 2021.
In addition to an increase in the prevalence of food insecurity in 2022, the agency says there was an increase in the severity as more households reported moderate or severe food insecurity.
It also noted an increase in the number of Canadians living in moderately or severely food insecure households was also seen in the Canadian income survey data collected in the first half of 2023.
This report by The Canadian Press was first published Oct 16, 2024.
OTTAWA – Statistics Canada says manufacturing sales in August fell to their lowest level since January 2022 as sales in the primary metal and petroleum and coal product subsectors fell.
The agency says manufacturing sales fell 1.3 per cent to $69.4 billion in August, after rising 1.1 per cent in July.
The drop came as sales in the primary metal subsector dropped 6.4 per cent to $5.3 billion in August, on lower prices and lower volumes.
Sales in the petroleum and coal product subsector fell 3.7 per cent to $7.8 billion in August on lower prices.
Meanwhile, sales of aerospace products and parts rose 7.3 per cent to $2.7 billion in August and wood product sales increased 3.8 per cent to $3.1 billion.
Overall manufacturing sales in constant dollars fell 0.8 per cent in August.
This report by The Canadian Press was first published Oct. 16, 2024.
