Canada's Stock Markets Slide Amid Labor Data Release

Canada's stock markets dropped on Friday following the release of labor data from both Canada and the US. According to Statistics Canada, the economy lost 42,000 jobs in August, falling short of economists' expectations for a gain of 15,000 positions.

The unemployment rate remained at 6.4 per cent, but Sébastien Mc Mahon, chief economist at iA Financial Group, noted that while the headline numbers may look weak, they support the view that Canada's economy is still strong.

McMahon attributed the losses to a decline in gold prices due to positive US labor data, which has investors repricing the odds of higher interest rates from the Federal Reserve in the near term. The S&P/TSX composite index dropped 119.32 points to 36,513.80.