AFTER THE BELL: Drop in Canadian employment, Trump tariffs on China impact markets
A gloomy Canadian jobs report and new U.S. tariffs on China translated into a down day on North American markets.
The TSX dipped 10 points, prompted in large part by a surprising StatsCan report showing that employment fell by 51,600 jobs in August.
Despite full-time employment edging up, the number of people working part-time declined by 92,000. Canada’s unemployment rose inched up 0.2 points to six percent in August.
Balancing out Canada’s stock exchange were gains in materials and energy, which along with technology and gold were the only sectors on the TSX to escape the red.
Today’s job data factored into a weaker loonie, which finished 19/100ths of a cent lower to $0.7589 cents US.
In the U.S., Trump stating that he is ready to slap tariffs on $267 billion worth of Chinese goods sparked an immediate sell-off on Wall Street, which at one point tumbled 133 points before ending the day 79 points lower.
If Trump’s latest threats come to fruition, it would result in tariffs on all Chinese goods entering the U.S.
Tariff troubles was offset by a positive U.S. job report with America’s unemployment rate at an 18-year low, and wages accelerating at a pace not seen since the Great Recession.
Overall it was an flat day on the Nasdaq, which lost 20 points.
Oil edged nine cents higher to $67.86 US a barrel despite news of rising domestic inventories, while it was also a down day for gold, which dropped $2.50 to $1,196 US an ounce.