A Canadian flag waves in Toronto's Bay Street financial district, captured on Friday, August 5, 2022. (Photo by Nathan Denette/The Canadian Press)


December 06, 2024 Tags:

Canada’s primary stock index saw modest growth on Thursday, powered by gains in energy and utilities sectors. The S&P/TSX composite index rose 38.86 points to close at 25,680.04. In contrast, U.S. markets dipped ahead of crucial jobs data due Friday, with the Dow Jones Industrial Average falling 248.33 points to 44,765.71. The S&P 500 and Nasdaq also posted slight declines, closing at 6,075.11 and 19,700.26, respectively.
Market Sentiment Ahead of Jobs Reports

Investors are gearing up for pivotal labour market updates from Canada and the U.S., as these reports could influence central bank decisions on interest rates. Kevin Headland, co-chief investment strategist at Manulife Investment Management, highlighted the importance of this data, particularly as the U.S. Federal Reserve weighs a potential quarter-percentage-point rate cut ahead of its December 18 decision.

In Canada, speculation is mounting that the Bank of Canada could implement a significant half-percentage-point rate cut next week. Headland believes the bank aims to mitigate the impact of looming mortgage renewals on household spending. “Unless tomorrow’s jobs report holds surprises, rate cuts seem likely,” he stated.

Mixed Canadian Bank Earnings

Canada’s banking sector delivered a mixed performance on Thursday. CIBC posted higher profits alongside reduced provisions for loan losses, while TD reported increased profits despite adjusted earnings reflecting ongoing challenges related to anti-money laundering measures. On the other hand, BMO’s results fell short of analyst expectations, though the bank anticipates improved loan performance by 2025. According to Headland, bank earnings have been in line with expectations.

Bitcoin Hits Historic Milestone

In a surprising turn, Bitcoin surged past the US$100,000 mark for the first time. The cryptocurrency’s rally follows news that U.S. President-elect Donald Trump has chosen crypto advocate Paul Atkins to lead the Securities and Exchange Commission. Headland noted the psychological significance of this milestone, adding that market volatility could impact Bitcoin’s ability to sustain this level.

Commodity Updates and Currency Movement

Canada’s dollar edged higher, trading at 71.24 cents US compared to 71.09 cents US the day before. In commodities, crude oil prices dipped slightly, with the January contract settling at US$68.30 per barrel, while natural gas prices rose to US$3.08 per mmBTU. Gold dropped by US$27.80 to close at US$2,648.40 an ounce, and copper prices also declined slightly.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

You may also like

TSX Ends Lower While U.S. Markets Climb with Earnings Hope

Canada’s leading stock index ended the week with a small dip, just as U.S. markets moved upward, powered by early....

Big Tech Helps Wall Street End a Wild Week on a High Note

Wall Street closed a bumpy week on a positive note Friday, thanks to a strong performance from major tech companies.....

TSX Surges Over 250 Points as U.S. Markets Gain for Third Day

Canada's main stock index closed sharply higher on Thursday, climbing more than 250 points in a widespread rally, with mining....

Stocks, Dollar Climb as Trump Eases Pressure on China Tariffs

Global financial markets showed signs of recovery this week as U.S. President Donald Trump backed away from aggressive tariff threats....

Canada Hits Pause on Climate and Diversity Disclosure Rules

The Canadian Securities Administrators (CSA) has announced an indefinite halt to its plans for introducing stricter climate and diversity reporting....

Wall Street Surges as Trump Eases Tariff Talk and Fed Criticism

Wall Street had a strong rally on Wednesday, following a global market surge, as President Donald Trump softened his stance....

Wall Street Bounces Back After Monday Dip, Dollar Steady

After a turbulent start to the week, Wall Street made a strong comeback on Tuesday, wiping out Monday’s steep losses.....

 Markets Rebound: TSX and Wall Street Post Strong Gains

Canada’s main stock index saw a sharp rebound Tuesday, rising nearly 300 points as energy, financial, and metal sectors pushed....

Big Tech’s ‘Magnificent Seven’ reels as Trump shakes market

As Big Tech companies prepare to release their quarterly earnings, they're grappling with political uncertainty that has sent shockwaves through....

Wall Street Sinks as Global Trust in U.S. Takes a Hit

Wall Street plunged on Monday, with major stock indexes taking a steep fall as investors around the world grow uneasy....

Stock Slide After Long Weekend: TSX and U.S. Markets Fall

Canada’s main stock index took a sharp dive on Monday, dropping nearly 200 points as trading resumed after the long....

Trump's Trade War Expands: Pharma and Chip Industries Targeted

The Trump administration has opened a fresh investigation into the import of pharmaceuticals and semiconductor chips, citing national security concerns.....