Main Canadian stock index down nearly 400 points, US stock markets also down

TORONTO-

Canada’s main stock index ended down nearly 400 points in the third straight day of downward movement amid better-than-expected jobs numbers and expectations of further rate hikes from both sides. sides of the border.

The S&P/TSX Composite Index finished down 395.88 points or 2.1% at 18,583.13.

Colin Cieszynski, chief market strategist at SIA Wealth Management, said markets were hit hard on Friday, particularly in the United States.

In New York, the Dow Jones Industrial Average was down 630.15 points or 2.1% at 29,296.79. The S&P 500 index fell 104.86 points or 2.8% to 3,639.66, while the Nasdaq composite fell 420.91 points or 3.8% to 10,652.40.

Canada was given a bit of a boost by the jobs numbers released today which were better than expected, as well as the rally in crude oil, Cieszynski said.

The Canadian economy saw a slight increase in employment in September, while the unemployment rate fell to 5.2%.

U.S. nonfarm payrolls data released on Friday was also better than expected, Cieszynski said.

He added that this means that central banks do not yet need to deviate from their quantitative tightening paths.

BMO chief economist Douglas Porter said in a note Friday morning that the bank still expects a half-percentage-point rate hike at the Bank of Canada meeting this month, but added that the upcoming business outlook survey and inflation data could change that.

Of course, analysts have said that some so-called bad news on jobs, inflation or earnings could actually be good news for the market, as it could signal an end to rate hikes coming soon.

But Cieszynski said good news is always good news – the latest figures show central banks have managed to deflate the bubble without plunging markets into crisis.

“That means the economy is holding up,” he said. “We don’t want everything to degenerate into a crisis. It would be a disaster for everyone.”

The Canadian dollar was trading at 72.93 cents US versus 72.89 cents US on Thursday.

The November crude contract rose US$4.19 to US$92.64 per barrel and the November natural gas contract was down 22.4 cents to US$6.75 per mmBTU.

The December gold contract was down US$11.50 at US$1,709.30 an ounce and the December copper contract was down almost six cents at US$3.39 an ounce. book.

Cieszynski said he will be watching the U.S. earnings season closely, especially for global companies that may be hurt by the rising U.S. dollar.

“We’ve had a general downturn in the economy, but the biggest problem for Americans is going to be their dollar,” he said.

“The US dollar has just risen so much against everything that I think it’s going to be a problem for companies in their earnings.”

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