Sat. Sep 19th, 2020

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Bay Street Likely See Mixed Start

2 min read

Canadian shares are likely to open on a mixed note Friday morning with investors reacting to employment data from Canada and the U.S.

A lower close in Asian markets and a somewhat mixed trend in Europe, amid continued worries about global growth may weigh on sentiment and prompt investors to stay cautious at higher levels.

According to official data released a little while ago, employment in Canada increased by 245,800 in August 2020, less than an expected addition of about 275,000 jobs, and addition of 418,500 jobs in July.

Full time employment increased by 205,800 in the month, while part time employment decreased to 40,000 in August from 345,300 a month earlier.

Meanwhile, unemployment rate decreased to 10.2% in August from 10.9% in the previous month.

Investors will also be reacting to U.S. non-farm payrolls data, and tracking the performance of U.S. technology stocks for direction.

According to data from the Labor Department, U.S. employment jumped by 1.371 million jobs in August. The increase, however, it was slightly smaller than expected. Meanwhile, unemployment rate dropped to 8.4% in the month.

On Thursday, the benchmark S&P/TSX Composite Index ended down 249.08 points or 1.49% at 16,448.89.

Laurentian Bank Financial Group (LB.TO) reported third-quarter net income of C$36.2 million or C$0.77 per share, down from C$47.8 million or C$1.05 per share in the year-ago period. Adjusted earnings were C$1.02 per share, compared to C$1.15 per share in the prior-year quarter, the company said.

Asian markets ended notably lower on Friday, tracking Wall Street’s losses on Thursday due to a sell-off in technology shares amid concerns about excessive valuations in the sector. The mood was largely cautious with investors looking ahead to the closely-watched U.S. monthly jobs report for August.

European stocks are broadly higher in cautious trade. While markets in the U.K. and France are modestly higher, Germany is down in negative territory after data showed a smaller than expected increase in factory orders.

In commodities, West Texas Intermediate Crude oil futures for October are rising $0.28 or 0.7% at $41.65 a barrel.

Gold futures for December are up $7.80 or 0.4% at $1,945.60 an ounce. Silver futures are rising $0.125 or 0.47% at $27.000 an ounce, while Copper futures are up $0.0330 or 1.1% at $3.0080 per pound.

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2020-09-04 08:49:48

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