The main stock index of Canada fell to a ten-week low on Friday, dropping to levels not seen since October.
The benchmark S&P/TSX Composite fell for a second session on Friday on a day Statistics Canada released employment data that showed a 5.2-per-cent drop in employment rate in April, the lowest in data since 1976.
The dip in employment, blamed on the paucity of new workers in the Canadian labour market, brought to a halt a surge which saw Canada create about 410,000 jobs over the previous two months. The economy has gained close to one million jobs in the past year. Employment is almost half a million higher than February 2020 levels.
It is feared that the Bank of Canada will tighten the monetary policy further in reaction to this decrease in the employment rate. There are fears that the Canadian economy has reached its capacity. In reaction, the Bank of Canada will raise interest rates in the months ahead. Since early March, the central bank has raised its lending rate by 1 per cent. More of such is expected from the Bank of Canada in the coming months.
Average hourly wages rose 3.3 per cent in comparison to last year’s figures. The wages for permanent workers rose by 3.4 per cent. The nation lost 31,600 full-time jobs in April, but gained 47,100 jobs in part-time employment. The construction sector was the hardest hit, losing 20,700 jobs. On the positive side, the service sector gained 31,400 jobs.
On the Canadian stock market, the technology sector experienced the biggest loss this Friday, plunging to a two-year low. Shopify and Ballard Power Systems were among the biggest losers on the index, shedding 11 per cent and 7 per cent, respectively.
However, it was not all gloom and doom, as oil prices rose on Friday, bringing hope of the first consecutive two-week gain in two months. This oil market reacted to signs that the market is tightening as the European Union moved toward banning Russian crude.
West Texas Intermediate futures sold almost US$110 a barrel and were on track to be up more around 5 per cent this week.
The EU plans to ban Russian crude for six months and oil products by year-end as a punitive measure against Moscow for invading Ukraine. Hungary is not keen on an embargo on Russian oil, but the EU is planning to give Hungary and Slovakia an extra year to comply.
U.S. stock indexes fell for a second straight day on Friday, with elevated Treasury yields dragging down growth shares.
The yield on benchmark two-year Canada bonds dropped about 4 basis points after the numbers were released to 2.682 per cent as of 8:42 a.m.
The Canadian dollar was exchanging 0.3 per cent lower at 77.69 U.S. cents, or one American dollar for C$1.2871.
The TSX Venture Exchange remained lower by 14.01 points, or 1.8 per cent, to 769.68.
Seven of the 12 TSX subgroups remained in negative territory by midday, with information technology losing 2 per cent, health-care shedding 1.1 per cent, and materials dropping 0.8 per cent.
The five gainers were led by communications, which rose by 0.6 per cent, while consumer staples and utilities each inched up 0.2 per cent.
Treasury prices and yields move in opposite directions.
Oil prices gained $2.57 to $110.83 U.S. a barrel.
Gold prices jumped $11.80 to $1,887.50 U.S. an ounce.
As you make your investment decisions, let good judgment guide you.
Let us now see the top five stories that attracted your interest most within the week.
Datametrex AI (TSXV:DM) reports record annual financial results
Datametrex AI Limited (DM) has reported record results for FY 2021.
Revenue was $49 million compared to $12 million for the same period in 2020, an increase of 296 per cent. Net earnings were $9 million, a 282 per cent increase, compared to a $5 million loss in 2020.
Marshall Gunter, CEO of Datametrex sat down with Shoran Devi to discuss the results.
Shares of Datametrex AI Limited (DM) gained 9.09 per cent this week, trading at $0.18 at 3:47 p.m. ET.
Baselode Energy Corp. (TSXV:FIND) provides additional updates from the ACKIO Discovery
Baselode Energy (FIND) has provided an update to the ongoing diamond drilling program on the ACKIO high-grade uranium discovery, Hook project.
The project is located in the Athabasca Basin area, northern Saskatchewan.
James Sykes, CEO, President and Director of Baselode highlighted the video with Shoran Devi.
Shares of Baselode Energy Corp. (FIND) rose 13.64 per cent, trading at $1.00 at 3:49 p.m. ET.
Ayurcann Holdings (CSE:AYUR) receives flower sales license amendment from Health Canada
Ayurcann Holdings Corp. (AYUR) has received its flower sales license amendment from Health Canada.
The Flower Sales License will allow Ayurcann to sell dried cannabis flower products in Canada through authorized distributors and retailers.
Ayurcann Holdings CEO Igal Sudman sat down with Coreena Robertson to discuss the news.
The share price of Ayurcann Holdings Corp. (AYUR) remained unchanged at $0.165.
Affinity Metals (TSXV:AFF) provides a deep dive into the Regal Project
Corporate Development Manager Travis Steinke sat down with Coreena Robertson to take a deeper look at the company’s Regal Project.
The Regal Project is located within the northern end of the prolific Kootenay Arc, approximately 25 km northeast of Revelstoke, British Columbia.
The share price of Affinity Metals Corp. (AFF) remained unchanged at $0.080.
i-80 Gold (TSX:IAU) intersects high-grade gold in the Ogee Zone at Granite Creek
i-80 Gold (IAU) has reported positive results from the 2021 underground drill program at the Granite Creek Property in Nevada.
The drill program included positive results from initial drilling to test the down-dip potential of the Ogee Zone.
i-80 CEO & Director Ewan Downie sat down with Coreena Robertson to discuss the results.
The share price of i-80 Gold Corp. (IAU) was up 2.44 per cent within the week, trading at $3.36 as at 3:57 p.m. ET.
We wish you a wonderful weekend. We’ll connect again next Friday for another review of the week’s top five stories.
