Markets Drift Toward the Weekend as Canada Jobs Contract

A tumultuous ten days for world markets appears to be calming down as the weekend approaches. Yesterday’s rally continued through Asia Pacific trading but has slowed this morning. US index futures have been flipping between slightly positive and slightly negative, while in Europe, the Dax is up 0.1% and the FTSE is up 0.4%.

Commodities are picking up today with Copper climbing 2.0% and US Crude Oil gaining 0.6%. Gold and Silver are steady. Bitcoin is up 1.6% as cryptocurrencies rebound from their recent selloff. The Yen continues to climb but otherwise trading in the major currencies has been pretty quiet. The US 10-year treasury note yield is steady just below 4.00%.

It’s a quiet day for earnings reports. Earnings season continues in Canada and resumes in the US next week with big retailers among the headliners.

Canada jobs disappointed again, not only was there a surprise decrease, but job losses also increased from a month ago (-2.8K vs street 22.5% and previous -1.4K), suggesting that the Canadian economy is continuing to weaken. On the positive side, wage inflation pressures eased as shown by average hourly wages (5.2% vs previous 5.6%).

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