Canadian Stocks Tumble As Investors Parse Job Numbers Amid Intensifying Gulf War

(RTTNews) - After two consecutive sessions of decline, Canadian stocks regained some ground in early trading on Friday but slumped as day progressed as traders analyzed the jobs data and core PCE numbers from Canada and the U.S., respectively, amid the deepening Middle East conflict.

The benchmark S&P/TSX Composite Index opened a little above yesterday's close but gave away the gains made early in the session to trade firmly negative throughout the remaining session before settling at 32,541.93, down by 298.67 points (or 0.91%).

Seven of the 11 sectors posted gains today, with the Consumer Staples sector leading the pack.

In Canada today, data released by Statistics Canada revealed that the unemployment rate rose to 6.7% in February from 6.5% in the previous month (the lowest in sixteen months), above the expected 6.6% increase.

Employment fell by 83,900 (or 0.4%) jobs in February following a decrease of 25,000 jobs in January, sharply missing forecasts of an increase of 10,000 jobs. The losses were concentrated in full-time positions, down 0.6% or 108,400.

The Labor Force Participation Rate edged down to 64.9% in February from 65% in January.

Canada's labor market update showing a sharp decline has raised concerns of weaker consumer demand and could dampen investor confidence in the economy.

In the U.S., the Personal Consumption Expenditure data released by the Bureau of Economic Analysis revealed that the core price index rose by 0.4% in February. Compared to the previous year, the core PCE index rose by 3.1%.

The Bank of Canada is slated to announce its lates interest rate decision next Wednesday.

With the current rate at 2.25%, economists feel that the central bank is likely to hold rates at the same level due to the ongoing war in the Middle East, which has resulted in a surge in oil prices and consequent inflation.

Effectively for Canadian households, mortgage rates would remain at the current level in the near-term.

Oil prices have jumped more than 30% since the gulf war began.

Prime Minister Mark Carney is in Norway to watch the NATO's Cold Response exercises along with Norway's Prime Minister Jonas Gahr Store.

Carney is scheduled to have a bilateral meeting with Store tomorrow to discuss foreign investment, aerospace, clean energy, critical minerals, and Artificial Intelligence.

Major sectors that gained in today's trading were Consumer Staples (1.64%), Real Estate (0.64%), Utilities (0.63%), and Industrials (0.51%).

Among the individual stocks, Empire Company Limited (3.89%), Kelt Exploration Ltd (3.20%), Loblaw CO (2.23%), Colliers International Group Inc (2.52%), and Bird Construction (3.78%) were the prominent gainers.

Major sectors that lost in today's trading were Healthcare (0.19%), Financials (0.31%), IT (1.44%), and Materials (4.17%).

Among the individual stocks, Methanex Corp (10.16%), First Majestic Silver Corp (7.88%), Enghouse Systems Limited (14.47%), and Sprott Inc (5.10%) were the notable losers.