TSX Falls as US Jobs Data Fuels Rate-Hike Bets
The TSX Composite Index fell by 0.33% to close at 36,513.80 on Friday after the release of stronger-than-expected US jobs data.
The S&P/TSX Composite Index (.GSPTSE) decline was driven by a drop in material and oil stocks, with miners down 1.2% as gold and silver prices declined.
Investors increased their bets on an interest-rate hike by the Federal Reserve this month, with short-term interest-rate futures prices implying a 65% chance of a hike, up from 55% before the jobs report.
AGF Investments' Mike Archibald said the data 'reaffirms this idea that the US economy is still in a very good position,' but noted it's essential to monitor upcoming data releases for market expectations.
The Bank of Canada kept interest rates steady, with Governor Tiff Macklem indicating policymakers are prepared to hike multiple times if inflation remains high.