Canadian equities are poised for a favorable start on Friday, buoyed by higher crude oil prices and a stable bullion market. Nonetheless, investor attention is firmly fixed on upcoming employment data from both Canada and the U.S. Any negative surprises in these reports may induce market volatility.
At 8:30 AM ET, data for Canada's December 2024 employment figures will be released. In November 2024, Canadian employment rose by 51,000, marking the highest increase in seven months, following a rise of 14,500 in October. However, the unemployment rate ticked up to 6.8% in November from 6.5% in October. Additionally, Canada's Average Hourly Earnings reached C$36.73 in October 2024.
The market also anticipates the release of Canadian building permits data for November at the same time.
Turning to the U.S., the nonfarm payrolls report is expected to show a slowdown in job growth for December, although the unemployment rate is predicted to remain steady at 4.2%. This stability would support the Federal Reserve's cautious approach towards interest rate reductions this year.
In corporate news, Corus Entertainment Inc. (CJR.B.TO) disclosed a net income of $11.9 million for the quarter ending November 30, 2024, down from $32.7 million in the same quarter the previous year. Meanwhile, Tilray Brands Inc. (TLRY.TO) posted an adjusted net loss of $2 million for the second quarter of fiscal 2025, improving from a $3 million loss in the same period a year earlier.
The Canadian market closed slightly higher on Thursday, propelled by material stock gains. Despite the uplift, trading was generally subdued as investors waited for the impending jobs data from Canada and the U.S. Volume was particularly light as U.S. markets were closed in remembrance of former President Jimmy Carter, who passed away in late December at the age of 100.
The S&P/TSX Composite Index, trading in a narrow range, ended the session with a modest gain of 21.68 points, a 0.09% increase, closing at 25,073.36.
In Asia, markets pulled back on Friday amid anticipation of the U.S. jobs report, lingering concerns over China’s growth, and speculations of potential intervention by Japanese authorities to prop up the yen. Rising bond yields also dampened sentiment.
European equities exhibited a mixed trend as investors exercised caution ahead of the U.S. jobs data. Germany and France saw slight upticks, whereas the U.K. market displayed weakness.
In the commodities sector, West Texas Intermediate crude oil futures climbed by $2.25, approximately a 3% increase, reaching $76.17 per barrel. Meanwhile, gold futures ascended by $14.30 or 0.53% to $2,705.10 per ounce, and silver futures increased by $0.140 or 0.45% to $31.155 per ounce.
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