Canada Stocks Fall a 2nd Day as Gold Shares Drop After Jobs DataEric Lam
Canadian stocks fell for a second day, ending at a two-month low, after gold miners slumped as the dollar surged amid better-than-forecast hiring gains in the U.S. and Canada.
Goldcorp Inc. and Barrick Gold Corp. each dropped 2.7 percent as gold plunged to an 11-week low amid speculation the Federal Reserve will raise interest rates this year. Saputo Inc. sank 2.6 percent to a November low for a second day of losses after reporting fourth-quarter earnings that missed estimates.
The Standard & Poor’s/TSX Composite Index slipped 62.23 points, or 0.4 percent, to 14,957.16 at 4 p.m. in Toronto. The gauge dropped 0.4 percent for the week.
“The market is deciding these numbers are good enough to even satisfy the Fed,” said David Cockfield, a fund manager at Northland Wealth Management in Toronto. His firm manages about C$325 million ($259 million). “The employment side is improving and September looks a lot more certain. The dollar’s anticipating this.”
Treasuries tumbled and the U.S. dollar rose, while U.S. equities were little changed American payrolls jumped the most in five months in May, bolstering the case that a slowdown in growth was temporary and clearing the way for a possible rate increase later this year.
Canada added six times as many jobs in May as economists predicted, with the job market proving robust even as the economy recovers from the effects of plunging crude-oil prices.
Nine of 10 industries in the S&P/TSX declined Friday on trading volume 10 percent lower than the 30-day average.
Gold producers led a drop in miners. Agnico Eagle Mines Ltd. stumbled 3.2 percent and Detour Gold Corp. dropped 1.7 percent.
Energy producers lost 0.3 percent, while health-care shares added 0.3 percent.
Oil capped a weekly loss as the Organization of Petroleum Exporting Countries agreed to maintain its production target at Friday’s meeting in Vienna, leaving the market oversupplied. West Texas Intermediate crude fell 1.9 percent this week, snapping a record 11-week rally.
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