On Friday, the Canadian market found itself in negative territory around noon, primarily dragged down by losses in the materials sector due to declining metal prices. Investors are also scrutinizing recent employment data from Canada and the U.S.
The benchmark S&P/TSX Composite Index fell by 155.02 points, or 0.7%, landing at 22,074.08 shortly before noon.
The Materials Capped Index saw a decline of 3.65%. Among the major losers were Wesdome Gold Mines (WDO.TO), Torex Gold Resources (TXG.TO), Equinox Gold (EQX.TO), First Majestic Silver (AG.TO), Osisko Mining (OSK.TO), New Gold (NDG.TO), Kinross Gold Corp (K.TO), Iamgold (IMG.TO), Lundin Gold (LUG.TO), and MAG Silver Corp (MAG.TO), all down between 6% and 8.6%.
Real estate stocks were also significant losers during the session. Boardwalk Real Estate (BEI.UN.TO), First Capital (FCR.UN.TO), Riocan Real Estate (REI.UN.TO), Interrent Real Estate Investment (IIP.UN.TO), and Northwest Healthcare Properties (NWH.UN.TO) experienced declines ranging from 1.6% to 2.5%.
Statistics Canada reported that employment in Canada increased by 26,700 jobs in May 2024, following a substantial addition of 90,400 jobs in the previous month and surpassing predictions of a 22,500 job increase.
Canada's unemployment rate rose to 6.2% in May from 6.1% in the prior month, marking the highest level since October 2021.
Additionally, average hourly earnings in Canada increased by C$1.77 from the previous year to C$36.01 in May, showing a 4.8% rise from April.
In the United States, Labor Department data revealed that non-farm payroll employment surged by 272,000 jobs in May, following a downward revision to 165,000 jobs in April. Economists had anticipated an increase of around 185,000 jobs, compared to an initially reported addition of 175,000 jobs the previous month.
The report also indicated that the annual growth rate of average hourly employee earnings accelerated to 4.1% in May from 4% in April.
Meanwhile, the U.S. unemployment rate edged up to 4% in May from 3.9% in April, contrary to expectations that it would remain unchanged. This unexpected increase brought the unemployment rate to its highest level since matching the 4% rate in January 2022.
