Markets in Toronto opened appreciably higher on Friday with energy and financial stocks leading the gains, as hopes of possible easing of China’s strict COVID restrictions and a weaker dollar boosted commodity prices.
The TSX Composite leaped 241.95 points, or 1.3%, to lead off the week’s last session at 19,483.17.
The Canadian dollar hurtled 1.11 cents to 73.88 cents U.S.
In individual stocks, Magna International cut its annual sales forecast as supply chain snags and higher utility costs keep vehicle production under pressure.
In early trading, Magna shares dipped 38 cents to $75.48.
On the economic slate, Statistics Canada reported the economy created 108,000 jobs, or 0.6%, in October, keeping the unemployment rate steady at 5.2%.
Moreover, Western University’s IVEY School of Business’ PMI registered at 50.1 in October, much lower than its 59.5 reading in September, and way off its 59.3 level from October 2021.
The TSX Venture Exchange ballooned 9.99 point, or 1.7%, to 595.02.
All but two of the 12 TSX subgroups climbed in the first hour, with gold shining 5.2% brighter, materials better by 4.7%, and energy perking 1.7%.
The two laggards were information technology, or 1.8%, and health-care, faltering 0.4%.
Stocks rose Friday, but all the major averages headed for a week of losses, as investors digested the October jobs report and what it means for the pace of future Federal Reserve rate hikes.
The Dow Jones Industrials screamed higher 404.24 points, or 1.3%, to 32,405.80.
The S&P 500 popped 52.86 points, or 1.4%, to 3,772.75
The NASDAQ recovered 141.09 points, or 1.4%, to 10,484.03.
Corporate earnings season continued, with mobile payment company Block surging 13% after beating expectations. Carvana shared dropped as it posted a wider-than-expected loss, while Twilio and Atlassian both plummeted on disappointing guidance.
A better-than-expected October non-farm payrolls report on Friday further fueled some concerns that the Fed will persist with its tightening campaign. The report showed 261,000 payrolls added in October, surpassing a Dow Jones estimate of 205,000 additions. However, the unemployment rate came in at 3.7%, slightly above the expected 3.5%.
Despite Friday’s gains, all the major averages are on track to close out the week with losses, with the Dow down 1.5% set to end four weeks of gains.
The S&P lost 3.5%, and the NASDAQ is down 5.8%, on pace to break two-week winning streaks. The tech-heavy NASDAQ is also on course for its worst weekly performance since January 2022.
Treasury prices gained a bit, lowering yields to 4.13% from Thursday’s 4.15%. Treasury prices and yields move in opposite directions.
Oil prices jumped $4.12 to $92.29 U.S. a barrel.
Gold prices hiked $42.50 to $1,673.40 U.S. an ounce.