By Robb M. Stewart
Shares on Canada's main exchange pulled back after strong jobs data in both Canada and the U.S. called into question the pace of rate cuts this year.
In midday trading, the Toronto Stock Exchange's S&P/TSX Composite Index was 1.2% lower at 24775.30, tracking a similar 1.2% drop for the week. Energy and consumer non-durables were the only sectors in positive territory, offset by finance-led weakness.
The blue-chip S&P/TSX 60 was down 1.3% at 1483.64.
The big banks were all lower, led by falls of 1.9% by Canadian Imperial Bank of Commerce and Royal Bank of Canada. Among other financial shares, Manulife Financial was 3% weaker and Sun Life Financial was 1.8% in the red.
Canada's labor market ended the year with a bang, with businesses adding a stronger-than-expected 90,900 jobs in December and the unemployment rate ticking down to 6.7% where economists expected a rise to 6.9%. For some economists, that raises the possibility the Bank of Canada will pause its rate cutting efforts after lowering its overnight rate at each policy meeting since June.
Hiring in the U.S. also blew past expectations, with 256,000 jobs added in December and the jobless rate edging down to 4.1%. The jobs report was the latest sign that the U.S. labor market has recovered from a midyear stumble and is expected to shut the door on an interest-rate cut at the Federal Reserve's next meeting later this month.
Other market movers:
Shares of Aritzia were 13% higher at C$64.62 after the women's fashion company recorded a higher profit in its fiscal third quarter as ecommerce gains drove revenue, it used fewer markdowns and costs fell.
Maple Leaf Foods was ahead 4.8% to C$21.15 after the packaged-meats company raised its financial outlook for the year following the completion of an initial restructuring process and with progress made in the planned spin-out of its Canada Packers business.
Tilray Brands was down 12% at C$1.75 after the company logged a wider loss in its fiscal second quarter and said revenue rose after sales at its beverage business offset declines at its core cannabis unit.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
01-10-25 1321ET