Canada’s main stock index fell 1% on Friday as a jump in the U.S. dollar following the release of stronger-than-expected U.S. jobs data pressured metal mining stocks, while investors braced for increased volatility in the months ahead. Wall Street stocks ended slightly lower.
The Toronto Stock Exchange’s S&P/TSX composite index ended down 222.10 points at 22,007.00. For the week, the index lost 1.2%, its third consecutive weekly decline.
The materials group was down 4.2% as the price of gold fell 3.7% and copper hit a one-month low.
“Gold is sensitive to the U.S. dollar and real interest rates,” said Joseph Abramson, co-chief investment officer at Northland Wealth Management.
The U.S. dollar and bond yields climbed after data showed the U.S. economy created 272,000 jobs in May, suggesting that the Federal Reserve could take time in starting its easing cycle.
The Toronto market has gained 5% this year, while the S&P 500, in the…
