Canadian shares are poised for a robust start this Friday thanks to the rise in commodity prices and the anticipation of major central banks implementing interest rate reductions sooner than expected. Also, the release of Canadian employment data is expected to influence the market.
The Canadian employment report for April, along with data on average hourly wages for the same month, is expected to be released at 8:30 AM ET. In March, employment in Canada slightly declined by 2,200 jobs following the addition of 40,700 jobs in February. The unemployment rate in March rose to 6.1% from 5.8% in the preceding month.
Algonquin Power & Utilities Corp. reported a net loss of $89.1 million in Q1 to its shareholders, contrasting the profit of $270.1 million from the same period in the previous year. The loss per share stood at $0.13, compared to a profit of $0.39 in the last year.
Enbridge Inc reported an 8% per share increase with adjusted earnings of $2.0 billion or $0.92 per common share for the first quarter of 2024. This was an increase from their $1.7 billion or $0.85 per common share reported in 2023.
Onex Corporation posted a net profit of US$10 million for Q1 this year, recovering from a net loss of $232 million in the same quarter the previous year.
Crescent Point Energy reported a net loss of $411.7 million for the quarter ending March 31, 2024. This is in stark contrast to their net profit of $216.7 million from a year ago.
CI Financial Corp reported an adjusted net income of $132.8 million for the first quarter of 2024. This is slightly lower compared to their $136.8 million income in the first quarter of 2023.
In other corporate news, Canfor Corp. announced the permanent closure of its Polar sawmill in Bear Lake, BC. In addition, it suspended its planned reinvestment in Houston, BC, citing ongoing timber shortages and challenging operational circumstances in Northern British Columbia.
Thursday saw the Canadian market end on a solid note, rebounding from a five-session win streak that broke the day before. Expectations of the Federal Reserve's interest rate cut in September rose as data showed a larger than anticipated increase in U.S. jobless claims.
The benchmark S&P/TSX Composite Index edged up to a one-month high of 22,426.97. It opened slightly higher at 22,287.01 and closed with a gain of 116.67 points or 0.52% at 22,375.83.
Asian markets advanced amid dwindling U.S. labor market, sparking hope for U.S. rate cuts this year. European markets also improved courtesy of optimism that the Federal Reserve may reduce interest rates in September or November after data indicated a weakening U.S. labor market.
Upbeat U.K. GDP growth data and Bank of England’s dovish rate decision further buoyed market sentiment. Meanwhile, crude oil futures of West Texas Intermediate rose by 0.71% to $79.81 a barrel. Gold futures increased to $2,379.90 an ounce, a rise of $39.60 or 1.69%, while Silver futures rose by 1.62% to $28.825 an ounce.
