Canada’s main stock index Toronto Stock Exchange was flat on Friday as the markets speculated the extent of US. interest rate cut in September after mixed jobs data.
At 10:16 a.m. ET (14:16 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was down 7.92 points, or 0.03%, at 22,980.36, and looked to register a weekly decline.
US nonfarm payrolls increased less than expected in August, while the unemployment rate slipped to 4.2%, pointing to an orderly labor market slowdown that does not warrant a hefty rate cut by the Federal Reserve.
While this data could push the case for a rate cut, but it does not signal a deterioration in labor market conditions.
“We’re seeing what the Fed wants to see, which is a gradual slowdown,” said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.
Recession and labor market coming apart are not the base case here, “the soft landing is the…
