Despite a little decline on Friday, the primary stock index of Canada nevertheless managed to record its fourth consecutive weekly gain. This was due to the fact that larger-than-expected employment increases in both the United States and Canada boosted the odds of a soft economic landing.
After reaching its highest closing level in nearly two years on Thursday, the S&P/TSX composite index (.GSPTSE), which is traded on the Toronto Stock Exchange, finished the day with a decrease of 57.03 points, or 0.3%, at 21,737.53.
It is a little bit more complicated in Canada, I believe, but by all indications, the market is holding up very well," said Elvis Picardo, a portfolio manager at Luft Financial, iA Private Wealth. "All indications point to the market being relatively strong."
The rate of unemployment in the United States reached a two-year high of 3.9% in February, despite the fact that job growth in the United States quickened in same month. This likely conceals any underlying softening of labor market conditions.
The economy of Canada added 40,700 jobs in February, which was twice as many as was anticipated. However, wage growth slowed for a second consecutive month as the central bank continues to maintain interest rates at a level that is comparable to the highest level seen in 22 years.
While oil prices finished 1.2% down at $78.01 per barrel, the energy sector had a fall of 0.7%. Additionally, shares of uranium miners came down. Both Nexgen Energy Ltd. (NXE.TO) and Cameco Corporation (CCO.TO) experienced a decline of 8.7% and 6.2%, respectively, as compared to the previous tab.
Consumer-related equities also experienced a decline, with the consumer staples sector experiencing a decline of 1% and the consumer discretionary sector finishing with a decrease of 0.4%. An increase of 0.2% was seen in the materials index, which is comprised of companies that mine precious and base metals as well as fertilizer. This occurred as gold continued its record-breaking run.
"In spite of the fact that gold is at an all-time high and in spite of the geopolitical uncertainties, the resource sector, which is a significant driver, has not really taken off. As a result, the development of the TSX is being slowed down a little bit," Picardo stated.
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