Labour Data Weighs Down Canadian and US Stock Markets

Stock markets in Canada and the US took a hit on Friday after the release of labour data from both countries. The news sparked a decline in gold prices, which weighed down the Canadian benchmark index.

Statistics Canada reported that the country lost 42,000 jobs in August, falling short of economists' expectations for a gain of 15,000 positions. However, Sébastien Mc Mahon, chief economist at iA Financial Group, pointed out that the unemployment rate remained steady at 6.4 per cent.

'Even though the headline looks kind of weak, that still supports the view that Canada's economy is going strong,' said Mc Mahon. He added that it's essential to consider the overall trend and not just the numbers.

The US labour data was also a significant factor in the market decline. Employers added 162,000 jobs to their payrolls last month, exceeding expectations and potentially giving the Federal Reserve leeway to raise interest rates to combat inflation.