Canadian and U.S. jobs data are poised to significantly influence price fluctuations in the Canadian market this Friday. Initially, the market may experience some volatility, but it is expected to normalize with more stock-specific activities as the session progresses.
Additionally, oil and metal prices are anticipated to impact the market.
Canada saw employment increase by 90,400 jobs in April, marking the highest rise in 15 months, after a decline of 2,200 jobs in March. The unemployment rate held steady at 6.1% in April, unchanged from the prior month.
In the United States, the Labor Department's non-farm payroll report is projected to reveal an addition of 185,000 jobs in May, following an increase of 175,000 jobs in April. The unemployment rate is expected to remain unchanged at 3.9%.
After trading within a narrow range, the Canadian market closed modestly higher on Thursday, driven by strong performances in the materials and energy sectors.
Sentiment was bolstered by rate cut announcements from the Bank of Canada and the European Central Bank, as well as expectations of a potential interest rate cut by the Federal Reserve in September.
The benchmark S&P/TSX Composite Index increased by 84.08 points, or 0.38%, to close at 22,229.10. Although the index started slightly in the red, it quickly moved into positive territory and remained stable throughout the session.
On Friday, Asian stocks ended mixed but managed to break a two-week losing streak following interest rate cuts by the European Central Bank and the Bank of Canada.
Weak U.S. economic data also fueled hopes for Federal Reserve rate cuts, while China reported mixed trade data.
European stocks are currently trading in negative territory as investors hesitate to take positions ahead of the critical U.S. non-farm payroll data, which could offer insights into the Federal Reserve's future interest rate decisions.
In the commodities market, West Texas Intermediate Crude oil futures have risen by $0.53 or 0.7%, reaching $76.08 per barrel.
Gold futures have declined by $37.90 or 1.59% to $2,353.00 per ounce, while silver futures have dropped by $0.842 or 2.7% to $30.525 per ounce.
