TSX Tumbles on Strong US Jobs Data, Rate Hike Bets Soar
Canada's main stock index, the S&P/TSX Composite Index, opened lower on Friday after stronger-than-expected US jobs data fueled bets on an interest-rate hike by the Federal Reserve this month.
The TSX fell 0.4% to 36,494.42 at 09:44 a.m. ET, while traders increased their odds of a rate hike to about 65%, up from 55% before the jobs report.
According to data released on Friday, US job growth accelerated sharply in August, with the unemployment rate remaining steady at 4.1%. The strong labor market has led investors to reassess their expectations for an interest-rate hike by the Federal Reserve later this month.
The Bank of Canada held interest rates steady this week, but Governor Tiff Macklem warned that policymakers are prepared to hike multiple times if inflation remains too high.