Bay Street Likely To Open With Negative Bias; Jobs Data Eyed

RTTNews | 882 days ago
Bay Street Likely To Open With Negative Bias; Jobs Data Eyed

(RTTNews) - Canadian shares are likely to open with a negative bias Friday morning, tracking weakness in European markets amid concerns about inflation and interest rates.

Canadian employment data, and average hourly earnings for the month of January, due at 8:30 AM ET, may significantly impact the mood.

The Canadian economy added 104,000 thousand jobs in December of 2022, beating market expectations of an addition of 8,000 jobs. The unemployment rate in Canada dropped to 5% in December, from 5.1% a month earlier.

Average hourly earnings increased by 5.2% year-on-year to C$ 32.85 in December.

The Canadian market ended weak on Thursday, losing ground for a second straight day, amid concerns about growth and uncertainty about the pace of future interest rate hikes by the Federal Reserve.

Investors digested a slew of earnings updates, and tracked the tend in global markets.

Healthcare, communications and materials shares were among the notable losers. Real estate and consumer staples shares found some support.

The benchmark S&P/TSX Composite Index, which opened nearly 100 points up at 20,777.51 and advanced to 20,821.66 in early trades, ended the session with a loss of 81.79 points or 0.4% at 20,597.75.

Magna International Inc. (MG.TO) reported fourth-quarter net income of $95 million, compared with net income of $464 million in the year-ago quarter. Adjusted earnings per share were $0.91, compared to prior year's $1.30.

Fortis Inc. (FTS.TO) reported fourth quarter net earnings of C$370 million or C$0.77 per share, up from C$328 million or C$0.63 per share in the prior-year quarter.

Asian stocks ended mixed on Friday amid much uncertainty about where inflation and interest rates are headed.

The dollar ticked higher after a spike inn short-term U.S. Treasury yields as Richmond Fed President Thomas Barkin said it's important for the U.S. central bank to continue to raise rates to ensure if brings inflation back to the 2 percent target.

European stocks are down firmly in negative territory amid lingering uncertainties around inflation and further interest rate hikes by the U.S. Federal Reserve.

In commodities trading, West Texas Intermediate Crude oil futures are up $1.73 or about 2.2% at $79.79 a barrel.

Gold futures are down $2.90 or 0.16% at $1,875.40 an ounce, while Silver futures are lower by $0.033 or 0.14% at $22.110 an ounce.

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