Latest news with #BoC
Mint
15-07-2025
- Business
- Mint
TSX retreats from record high as US bank earnings weigh on financials
TSX ends down 0.5% at 27,054.14 Financials lose 0.6%, energy was down 0.9% Canada's annual inflation rate rises to 1.9% Eight of 10 major sectors end lower July 15 - Canada's main stock index pulled back on Tuesday from a record high, with heavily weighted financials among the sectors that declined as investors assessed U.S. bank earnings and after domestic inflation data reduced prospects of Bank of Canada interest rate cuts. The S&P/TSX composite index ended down 144.71 points, or 0.5%, at 27,054.14, after posting a record closing high on Monday. Wall Street opened the second-quarter earnings season on a somber note, with banking stocks whipsawing in volatile trade. "We're seeing profit-taking against the news because we've seen markets run up so hard for three months," said Colin Cieszynski, chief market strategist at SIA Wealth Management. "With the U.S. banks down, it's dragging on the Canadian banks, especially because some of the Canadian banks have large U.S. operations." The financials sector, which accounts for 33% of the TSX's weighting, fell 0.6%. Eight of the TSX's 10 major sectors ended lower. "Canadian inflation doesn't help here either because it suggests the Bank of Canada may not be able to cut much further," Cieszynski said. Canada's annual inflation rate rose to 1.9% in June from 1.7% in May and CPI-median, one of the core measures of inflation closely tracked by the BoC, rose to 3.1% from 3%. Money markets have largely priced out the chances of a rate cut at the BoC's next policy decision on July 30 in response to the inflation data as well as stronger-than-expected jobs data on Friday. The energy sector lost 0.9% as the price of oil settled down 0.7% at $66.52 a barrel. Gold also fell. The materials sector, which includes metal mining shares, was down 0.7%. Technology ended 0.8% lower. This article was generated from an automated news agency feed without modifications to text.
Qatar Tribune
13-07-2025
- Business
- Qatar Tribune
Canada economy added 83,100 new jobs in June
Agencies Canada's unemployment rate fell slightly to 6.9 percent in June as the wholesale and retail trade sectors as well as manufacturing, healthcare and social assistance all saw surprise job growth, data showed on Friday. The economy added 83,100 new jobs in June, the first net increase since January, Statistics Canada said. Most of the employment growth was in part-time work. Analysts polled by Reuters had estimated the unemployment rate would tick up to 7.1 percent from 7 percent in May, with no job additions. The jobs report usually has a standard error of around 32,000 between two consecutive months. Friday's release was the final jobs report before the Bank of Canada's monetary policy decision on July 30, and better-than-expected unemployment and job addition numbers are likely to tilt the bank towards another hold in its policy rate. June inflation data is due out next week. Money market bets for a rate cut this month shrank to below 20 percent following the labor force survey. On Thursday, rate cut bets were at 30 percent after US President Donald Trump said he would impose 35 percent tariffs on Canadian imports from Aug 1, up from 25 percent previously threatened. 'While the unemployment rate is still elevated, the strength in other measures in this report clearly diminishes the odds of a BoC cut in July,' Katherine Judge, economist at CIBC Capital Markets wrote in a note. The Canadian dollar was trading down 0.12 percent to 1.3671 to the US dollar, or 73.15 US cents. Bond yields on the two-year government bonds were up 1.9 basis points to 2.715 percent. While the number of unemployed Canadians in June changed only slightly from May, it was up 9 percent to 128,000 on a year-over-year basis. And more than one in five unemployed people had been searching for work for 27 weeks or more in June, a sharp increase from a year ago. Statistics Canada said the layoff rate in June did not show any major uptick and remained low at 0.5 percent relative to historical averages barring recessionary periods. Tariff-exposed sectors such as transportation and manufacturing had been showing signs of strain for the three months through May. The employment in transportation dropped by 3,400 people in June while manufacturing posted a jump of 10,500, StatsCan said. The biggest increase in employment was a 33,600 jump seen in wholesale and retail trade. Healthcare and social assistance saw an increase of 16,700 people while the agriculture sector shed 6,000 employees in June. The participation rate - the portion of the population over the age of 15 that is economically active- was at 65.4 percent in June, up from 65.3 percent in May. The average hourly wage of permanent employees - a gauge closely tracked by the BoC to ascertain inflationary trends - grew by 3.2 percent to C$37.22.
Kuwait Times
12-07-2025
- Business
- Kuwait Times
Canada economy added 83,100 new jobs in June
OTTAWA: Canada's unemployment rate fell slightly to 6.9 percent in June as the wholesale and retail trade sectors as well as manufacturing, healthcare and social assistance all saw surprise job growth, data showed on Friday. The economy added 83,100 new jobs in June, the first net increase since January, Statistics Canada said. Most of the employment growth was in part-time work. Analysts polled by Reuters had estimated the unemployment rate would tick up to 7.1 percent from 7 percent in May, with no job additions. The jobs report usually has a standard error of around 32,000 between two consecutive months. Friday's release was the final jobs report before the Bank of Canada's monetary policy decision on July 30, and better-than-expected unemployment and job addition numbers are likely to tilt the bank towards another hold in its policy rate. June inflation data is due out next week. Money market bets for a rate cut this month shrank to below 20 percent following the labor force survey. On Thursday, rate cut bets were at 30 percent after US President Donald Trump said he would impose 35 percent tariffs on Canadian imports from Aug 1, up from 25 percent previously threatened. 'While the unemployment rate is still elevated, the strength in other measures in this report clearly diminishes the odds of a BoC cut in July,' Katherine Judge, economist at CIBC Capital Markets wrote in a note. The Canadian dollar was trading down 0.12 percent to 1.3671 to the US dollar, or 73.15 US cents. Bond yields on the two-year government bonds were up 1.9 basis points to 2.715 percent. While the number of unemployed Canadians in June changed only slightly from May, it was up 9 percent to 128,000 on a year-over-year basis. And more than one in five unemployed people had been searching for work for 27 weeks or more in June, a sharp increase from a year ago. Statistics Canada said the layoff rate in June did not show any major uptick and remained low at 0.5 percent relative to historical averages barring recessionary periods. Tariff-exposed sectors such as transportation and manufacturing had been showing signs of strain for the three months through May. The employment in transportation dropped by 3,400 people in June while manufacturing posted a jump of 10,500, StatsCan said. The biggest increase in employment was a 33,600 jump seen in wholesale and retail trade. Healthcare and social assistance saw an increase of 16,700 people while the agriculture sector shed 6,000 employees in June. The participation rate - the portion of the population over the age of 15 that is economically active- was at 65.4 percent in June, up from 65.3 percent in May. The average hourly wage of permanent employees - a gauge closely tracked by the BoC to ascertain inflationary trends - grew by 3.2 percent to C$37.22. – Reuters
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Business Standard
11-07-2025
- Business
- Business Standard
Canada records surprise job gains in June as unemployment rate dips to 6.9%
Canada's unemployment rate fell slightly to 6.9 per cent in June as the wholesale and retail trade sectors as well as manufacturing, healthcare and social assistance all saw surprise job growth, data showed on Friday. The economy added 83,100 new jobs in June, the first net increase since January, Statistics Canada said. Most of the employment growth was in part-time work. Analysts polled by Reuters had estimated the unemployment rate would tick up to 7.1 per cent from 7 per cent in May, with no job additions. The jobs report usually has a standard error of around 32,000 between two consecutive months. Friday's release was the final jobs report before the Bank of Canada's monetary policy decision on July 30, and better-than-expected unemployment and job addition numbers are likely to tilt the bank towards another hold in its policy rate. June inflation data is due out next week. Money market bets for a rate cut this month shrank to below 20 per cent following the labor force survey. On Thursday, rate cut bets were at 30 per cent after US President Donald Trump said he would impose 35 per cent tariffs on Canadian imports from Aug. 1, up from 25 per cent previously threatened. "While the unemployment rate is still elevated, the strength in other measures in this report clearly diminishes the odds of a BoC cut in July," Katherine Judge, economist at CIBC Capital Markets wrote in a note. The Canadian dollar was trading down 0.12 per cent to 1.3671 to the US dollar, or 73.15 US cents. Bond yields on the two-year government bonds were up 1.9 basis points to 2.715 per cent. While the number of unemployed Canadians in June changed only slightly from May, it was up 9 per cent to 128,000 on a year-over-year basis. And more than one in five unemployed people had been searching for work for 27 weeks or more in June, an sharp increase from a year ago. Statistics Canada said the layoff rate in June did not show any major uptick and remained low at 0.5 per cent relative to historical averages barring recessionary periods. Tariff-exposed sectors such as transportation and manufacturing had been showing signs of strain for the three months through May. The employment in transportation dropped by 3,400 people in June while manufacturing posted a jump of 10,500, StatsCan said. The biggest increase in employment was a 33,600 jump seen in wholesale and retail trade. Healthcare and social assistance saw an increase of 16,700 people while the agriculture sector shed 6,000 employees in June. The participation rate - the portion of the population over the age of 15 that is economically active - was at 65.4 per cent in June, up from 65.3 per cent in May. The average hourly wage of permanent employees - a gauge closely tracked by the BoC to ascertain inflationary trends - grew by 3.2 per cent to C$37.22.
Yahoo
11-07-2025
- Business
- Yahoo
Canada's economy added 83K jobs in June, muting chance of a BoC rate cut
Canada's labour market defied expectations in June, adding a net 83,100 jobs while the unemployment rate dropped to 6.9 per cent, according to Statistics Canada data released on Friday. The figures make a Bank of Canada interest rate cut less likely, economists say, and will likely move the focus to upcoming inflation data. Financial industry experts had expected the job market to stay essentially flat last month, forecasting a net loss of 3,000 jobs, according to consensus estimates published by the Bank of Montreal. Expectations were for the unemployment rate to increase 0.1 percentage point to 7.1 per cent. The results show the "resilience" of Canada's labour market, which will be noted by the Bank of Canada (BoC), CIBC economist Katherine Judge writes following the release. "While the unemployment rate is still elevated, the strength in other measures in this report clearly diminishes the odds of a BoC cut" at the July 30 interest rate announcement, she says. Friday's data come in the shadow of renewed volatility in the Canada-U.S. trade relationship, after U.S. President Donald Trump threatened new tariffs late Thursday. The data also follow stagnant job numbers for May, with 8,800 jobs gained that month. The unemployment rate rose 0.1 percentage point to seven per cent in May. The June numbers come "in stark contrast to forecasts looking for a rise in the jobless rate," notes Desjardins Group economist Royce Mendes, but the still-high unemployment rate means "today's labour market data won't be the swing factor" for the BoC. "Next week's CPI release will play a much more important role in determining whether central bankers resume monetary easing later this month," Mendes wrote, referring to Statistics Canada's consumer price index update on July 15. The job gains were largely in part-time positions, Statistics Canada says. Jobs were added in wholesale and retail trade (34,000 net jobs added, a gain of 1.1 per cent from May), as well as in healthcare and social assistance (17,000 added, a 0.6 per cent gain). Average hourly wages were up 3.2 per cent from last year (not seasonally adjusted). Unemployment among "core-aged" (25 to 54 years old) women dropped 0.3 percentage points in June to 5.4 per cent, and was steady at 6.1 per cent for core-aged men. Youth unemployment was also steady, but Statistics Canada notes it is up 0.7 percentage point from last year and remains "significantly above its pre-pandemic average of 10.8 per cent recorded from 2017 to 2019." In a note published on July 4, Royal Bank of Canada economists Nathan Janzen and Claire Fan said they expect Canada's labour market should soon be reaching its low point, "with the unemployment rate peaking not far from where it is today." Domestic demand has held up, and the worst-case trade war scenarios "look less likely than they did a few months ago," they wrote, with business confidence improving and some hiring indicators showing stability. This story will be updated. John MacFarlane is a senior reporter at Yahoo Finance Canada. Follow him on X @jmacf. Download the Yahoo Finance app, available for Apple and Android. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
