Canada’s main stock index opened lower on Friday, hurt by rate-sensitive technology stocks, after a stronger-than-expected jobs data heightened worries that the Bank of Canada might keep interest rates elevated for longer.
The TSX lost 94.88 points to conclude Thursday at 20,132.08.
The Canadian dollar dropped 0.21 cents at 73.10 cents U.S.
Bank of Canada Governor Tiff Macklem said on Thursday interest rates may not be high enough to bring inflation back down to target, a day after the BoC held borrowing costs at a 22-year high.
Rogers Communications said on Thursday it was pricing in a $3-billion bond offering to repay short-term debt and other borrowings. Rogers shares docked 49 cents to $53.40.
In the economic docket, Statistics Canada says the economy created 40,000 jobs in August, though the rise had no effect on the unemployment rate, which remained at 5.5%, following three consecutive monthly increases in May, June and July.
The TSX Venture Exchange eked upward 0.59 points to 586.14.
All but three of the 12 TSX subgroups were negative to begin the session, with financials, communications and industrials each down 0.5%.
The three gainers were led by energy and gold, each up 0.4%, and consumer staples, inching up 0.2%.
The S&P 500 rose on Friday, but Wall Street headed for a losing week amid concern that the Federal Reserve could raise rates more than expected.
The Dow Jones Industrials advanced 44.83 points to open the week’s final session at 34,545.56.
The much-broader index moved ahead 14.06 points to 4,465.20.
The NASDAQ index grabbed 62.14 points to 13,810.97.
Stocks are headed for a down week. The Dow has dropped 0.9% and S&P 500 has slumped 1.2%, while the NASDAQ lost 1.6%.
Shares of e-signature stock DocuSign lost 3.5% even after the company topped second-quarter estimates and posted rosy third-quarter guidance. RH dropped 10% as the home furnishings company reported soft guidance for third-quarter revenue.
Recent economic data, including lower-than-expected initial jobless claims, have reignited rate hike fears and concerns that the Federal Reserve may have more work ahead.
Prices for the 10-year Treasury gained ground, lowering yields to 4.22% from Thursday’s 4.25%. Treasury prices and yields move in opposite directions.
Oil prices recovered 13 cents to $87.00 U.S. a barrel.
Gold prices climbed $6.90 to $1,949.40 U.S. an ounce.