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Canadian Market Wrap

Canadian shares drop on weak U.S. jobs report; National Bank sinks

Canadian retreated on Friday after weak U.S. payrolls data stoked worries about economic strength in the country’s largest trading partner. The Standard & Poor’s/TSX Composite Index (TSE:OSPTX) fell 0.8% to 13,131.22 at 10:54 a.m. in Toronto. Two shares declined for every issue that advanced as nine out of ten share groups were in negative territory.

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National Bank drops after warning of a substantial investment loss.

Canadian retreated on Friday after weak U.S. payrolls data stoked worries about economic strength in the country’s largest trading partner.

The Standard & Poor’s/TSX Composite Index (TSE:OSPTX) fell 0.8% to 13,131.22 at 10:54 a.m. in Toronto. Two shares declined for every issue that advanced as nine out of ten share groups were in negative territory.

Data on Friday showed that the number of new U.S. jobs created in September decelerated sharply for the second straight month. The world’s largest economy added a seasonally adjusted 142,000 jobs, compared with expectations for a 200,000 gain.

Sentiment in Canada is often influenced by news out of the United States, Canada's largest trading partner.

Financials, the index's most heavily weighted sector, was the biggest laggard with a 2.9% slump. 

The National Bank of Canada (TSE:NA) sank 5.6% to $40.73. The country’s sixth-largest lender is eliminating “several hundred” jobs as part of a restructuring resulting from the economic slowdown and the risk of “substantial loss” on a German investment. 

Royal Bank of Canada (TSE:RY), the company with the highest weighting in the index, tumbled 3.4% to $71.06, after reaching $70.64, the lowest intraday price since August 26.

Toronto-Dominion Bank (TSE:TD), the second-largest bank by market value, lost 1.6% to C$51.40.

The energy sector, the main index's second most heavily weighted group, decreased 0.6% as oil, Canada’s largest export, fell following the U.S. jobs data.

Suncor Energy (TSE:SU), Canada's largest oil sands producer, dropped 1.1% to C$34.86. Canadian Natural Resources Limited (TSE:CNQ), Canada’s second-largest energy producer, fell 0.4% to C$25.59.

November West Texas Intermediate crude traded at $44.28 a barrel, down 1%, on the New York Mercantile Exchange. The slowdown in U.S. job creation last month hinte at the potential for weaker energy demand.

The materials sub-index, which includes mining shares, was the only advancer with a 3.3% jump.  

Goldcorp (TSE:G), Canada’s largest gold miner by market value, rose 4.4% to C$16.79. Barrick Gold (TSE:ABX), Canada’s second-largest gold miner, added 5.1% to C$8.61.

U.S. gold futures for December delivery were up $20.80 an ounce at $1,134.50.

The TSX index has lost 10% so far this year.

 

 

 

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