Equities
Global stocks were under pressure as investors took stronger than expected U.S. and Canadian jobs reports that could set the tone for future interest-rate moves.
Canada added 90,900 jobs in December, compared with estimates of 25,000, while the unemployment rate unexpectedly fell to 6.7 per cent.
The U.S. economy added 256,000 jobs last month, compared with economists’ estimate of a rise of 160,000. The unemployment rate stood at 4.1 per cent, compared with expectations of 4.2 per cent.
Wall Street’s main indexes opened lower after the U.S. jobs report fanned expectations that the Federal Reserve will take a measured approach to monetary policy easing this year.
The Dow Jones Industrial Average fell 0.22 per cent to 42,540.29., the S&P 500 dropped 0.47 per cent to 5,890.35, and the Nasdaq Composite declined 0.86 per cent to 19,312.26 at the bell.
The Toronto Stock Exchange’s S&P/TSX composite index opened down 0.51 per cent at 24,946.52 on the surprise jobs numbers.
Market bets decline for BoC rate cut this month following strong jobs data
In Canada, investors are getting results from Corus Entertainment Inc. and Tilray Brands Inc.
On Wall Street, markets are watching earnings from Constellation Brands Inc., Delta Air Lines Inc. and Walgreens Boots Alliance Inc.
“Strong jobs creation and low unemployment are often indicators of a healthy economy – naturally a cause for optimism, but potentially causing slight disappointment for investors hoping for further interest rate cuts,” Richard Flynn, managing director at Charles Schwab UK, said.
World market themes to watch over the next seven days
Overseas, the pan-European STOXX 600 was down 0.48 per cent in morning trading. Britain’s FTSE 100 slid 0.31 per cent, Germany’s DAX gave back 0.03 per cent and France’s CAC 40 retreated 0.25 per cent.
In Asia, Japan’s Nikkei closed 1.05 per cent lower, while Hong Kong’s Hang Seng fell 0.92 per cent.
Commodities
rallied more than 4 per cent to reach their highest levels since October as traders focused on potential supply disruptions from more sanctions on Russia.
Brent crude futures gained 4.6 per cent to US$80.42 a barrel. West Texas Intermediate (WTI) crude futures advanced 4.8 per cent to US$77.49.
“We anticipate a significant year-over-year increase in global oil demand of 1.6 million barrels a day in the first quarter of 2025, primarily boosted by ... demand for heating oil, kerosene and LPG,” JPMorgan analysts said in a note.
In other commodities, spot gold climbed 0.4 per cent to US$2,679.65 an ounce, after hitting its highest level since Dec. 13 earlier in the session. U.S. gold futures rose 0.6 per cent to US$2,707.
Currencies and bonds
The Canadian dollar weakened against its U.S. counterpart.
The day range on the loonie was 69.26 US cents to 69.51 US cents in early trading. The Canadian dollar was down about 1.14 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, surged 0.42 per cent to 109.64.
The euro slid 0.45 per cent to US$1.0256. The British pound dropped 0.65 per cent to US$1.2227.
In bonds, the yield on the U.S. 10-year note was last up at 4.766 per cent.
Corporate news
Corus Entertainment has reported its first-quarter profit fell compared with a year ago as its revenue dropped 12 per cent.
Maple Leaf Foods Inc. is raising its quarterly dividend by nine per cent as it works to complete a spin off its pork business.
Delta Air Lines has reported a higher-than-expected fourth quarter profit and forecast stronger earnings in the current quarter, while predicting 2025 to be the most profitable year in the company’s 100-year history.
Walgreens Boots Alliance beat analysts’ lowered expectations for first-quarter adjusted profit and maintained its annual forecast, as the healthcare firm benefits from turnarounds efforts.
Economic news
Japan household spending
(8:30 a.m. ET) Canadian employment for December.
(8:30 a.m. ET) Canadian building permits for November. Estimate is a month-over-month increase of 1.0 per cent.
(8:30 a.m. ET) U.S. nonfarm payrolls for December.
(10 a.m. ET) U.S. University of Michigan Consumer Sentiment Index for January.
With Reuters and The Canadian Press