Higher crude oil prices and slightly optimistic European stocks indicate a potential uptick for the Canadian market as trading kicks off this Friday morning. However, the central focus will be on the U.S. non-farm payroll data, which is expected before the market opens. This data could provide insights regarding the Federal Reserve's approach in determining the magnitude of its upcoming interest rate adjustments.
On the Canadian economic landscape, the Ivey Business School is scheduled to release the Ivey PMI figures for September at 10 AM ET. Notably, Canada’s Ivey Purchasing Managers Index experienced a considerable decline, dropping to 48.2 in August 2024 from 57.6 in July, falling short of the anticipated 55.5, marking its lowest point since December 2020.
In corporate developments, Coeur Mining, Inc. (NYSE: CDE) has reached a conclusive agreement to acquire SilverCrest Metals Inc. (SIL.TO) through a wholly-owned subsidiary. This acquisition will proceed under a court-approved arrangement plan.
Thursday saw the Canadian market concluding on a weaker note, hindered by losses in the real estate, materials, and utilities sectors. However, this decline was mitigated by robust and persistent buying within the energy sector.
Investor sentiment was negatively impacted by data revealing the third consecutive month of contraction in Canada’s services sector and escalating tensions in the Middle East.
The benchmark S&P/TSX Composite Index concluded down by 33.05 points or 0.14% at 23,968.50, having touched an intraday low of 23,823.96 and a high of 23,982.24. According to S&P Global, Canada's Composite PMI slipped to 47.0 in September from 47.8 in August, indicating a deeper contraction in private sector activity for the fourth consecutive month. The Services PMI also decreased to 46.4 in September from 47.8 in August, marking the fourth month of consecutive decline.
Asian markets ended with mixed results due to ongoing Middle East tensions, as investors anticipated the crucial U.S. jobs report—which could potentially influence U.S. interest rate decisions. Meanwhile, the U.S. dollar stayed near a six-week high in Asian trading. Gold remained close to record levels, and oil prices balanced, having surged 5 percent the day before, amid comments by U.S. President Joe Biden regarding potential Israeli actions on Iran's oil industry. The Shanghai market remained offline due to a week-long holiday.
In Europe, stocks are slightly higher, with investors treading cautiously as they await the pivotal U.S. jobs data, which could illuminate the health of the economy and future rate decisions.
In the commodities sector, West Texas Intermediate Crude oil futures have risen by $1.17, or 1.6%, reaching $74.88 a barrel. Gold futures have climbed $3.00, or 0.11%, to $2,682.20 an ounce, while silver futures have dipped $0.044, or 0.14%, to $32.420 an ounce.
