Canada's TSX gains after surprise job losses bolster rate-hold outlook
EWC•The S&P/TSX Composite rose 0.92% after Canada reported a net loss of 68,300 jobs in September, far below expectations for a gain of 9,200. The data lowered the market-implied odds of a Bank of Canada rate hike at its next meeting to 27% from 40%.
1. Stocks rise after jobs report
The S&P/TSX Composite was up 0.92% at 35,462.14 points, with eight of 10 major sectors higher. Materials led gains, rising 2.8%, as gold advanced more than 1%; energy gained 1.1% despite softer oil prices, while financials added 0.3%.
2. Rate outlook shifts
Canada's economy lost a net 68,300 jobs in September, compared with analysts' forecast for a gain of 9,200. Swap-market data showed the odds of a rate hike at the Bank of Canada's next meeting fell to 27% from 40%, though investors still priced in a 25-basis-point hike in December. Aritzia shares surged 16.7% after the apparel retailer topped analyst expectations for second-quarter revenue and profit. Despite the session's gains, the TSX remained on track for a third straight weekly decline.
