Stock markets outlook june 3 2011 drop after disappointing U.S. jobs data ; Disappointing jobs data from the United States preceded further declines on North American stock markets as Friday's trading session got started.
Shortly after the open, the Toronto Stock Exchange's S&P/TSX composite index was down 96.4 points, or 0.71 per cent, to 13,423.10. That sets the stage for the fourth straight decline on the Canadian stock market, and the fourth weekly retreat out of the last six.
The U.S. Labor Department said there were 54,000 more jobs last month, well short of economists' expectations of 165,000. The consensus estimate in itself marked a sharp drop in jobs growth from the downwardly revised 233,000 jobs created in April.
The U.S. unemployment rose to 9.1 per cent from nine per cent. Economists expected the rate to fall to 8.9 per cent.
Such numbers follow up earlier data this week showing weaker growth in China's manufacturing sector, and other data that was indicative of a stagnant job market in the U.S.
"This week has been brutal on economic data releases," said Adrian Mastracci, portfolio manager with KCM Wealth Management in Vancouver. "Markets are struggling to make sense of the implications."
Canada's job numbers for May are scheduled for release next Friday. Economists expect 25,000 more people were working last month, compared with employment growth of 58,300 in April.
On U.S. stock markets, the Dow Jones industrial average fell 125.75 points, or 1.03 per cent, to 12,122.80 in initial activity Friday. The Nadsaq composite index was off 27.31 points, or 0.98 per cent, to 2,746.00.
On the New York Mercantile Exchange, crude oil was down $1.77 U.S. to $98.63 U.S. a barrel, while gold rose $8 U.S. to $1,540.70 U.S. an ounce.
The Canadian dollar was down 86 basis points to $1.0164 U.S..
Overseas markets were down as well on Friday.
The United Kingdom's FTSE index was down 28.68 points, or 0.49 per cent, to 5,819.24. France's CAC fell 32.63 points, or 0.84 per cent, to 3,857.24. Germany's DAX index dropped 29.92 points, or 0.42 per cent, to 7,044.20.
Japan's Nikkei index was down 62.83 points, or 0.66 per cent, to 9,492.21. In Hong Kong, the Hang Seng fell 304.28 points, or 1.31 per cent, to 22,949.56. Mainland China's Shanghai composite index was up 22.84 points, or 0.84 per cent, to 2,728.02. _On Thursday, the TSX was down 8.38 points, or 0.06 per cent, to 13,519.50. The Dow Jones fell 41.59 points, or 0.34 per cent, to 12,248.55. The Nasdaq rose 4.12 points, or 0.15 per cent, to 2,773.31.
Shortly after the open, the Toronto Stock Exchange's S&P/TSX composite index was down 96.4 points, or 0.71 per cent, to 13,423.10. That sets the stage for the fourth straight decline on the Canadian stock market, and the fourth weekly retreat out of the last six.
The U.S. Labor Department said there were 54,000 more jobs last month, well short of economists' expectations of 165,000. The consensus estimate in itself marked a sharp drop in jobs growth from the downwardly revised 233,000 jobs created in April.
The U.S. unemployment rose to 9.1 per cent from nine per cent. Economists expected the rate to fall to 8.9 per cent.
Such numbers follow up earlier data this week showing weaker growth in China's manufacturing sector, and other data that was indicative of a stagnant job market in the U.S.
"This week has been brutal on economic data releases," said Adrian Mastracci, portfolio manager with KCM Wealth Management in Vancouver. "Markets are struggling to make sense of the implications."
Canada's job numbers for May are scheduled for release next Friday. Economists expect 25,000 more people were working last month, compared with employment growth of 58,300 in April.
On U.S. stock markets, the Dow Jones industrial average fell 125.75 points, or 1.03 per cent, to 12,122.80 in initial activity Friday. The Nadsaq composite index was off 27.31 points, or 0.98 per cent, to 2,746.00.
On the New York Mercantile Exchange, crude oil was down $1.77 U.S. to $98.63 U.S. a barrel, while gold rose $8 U.S. to $1,540.70 U.S. an ounce.
The Canadian dollar was down 86 basis points to $1.0164 U.S..
Overseas markets were down as well on Friday.
The United Kingdom's FTSE index was down 28.68 points, or 0.49 per cent, to 5,819.24. France's CAC fell 32.63 points, or 0.84 per cent, to 3,857.24. Germany's DAX index dropped 29.92 points, or 0.42 per cent, to 7,044.20.
Japan's Nikkei index was down 62.83 points, or 0.66 per cent, to 9,492.21. In Hong Kong, the Hang Seng fell 304.28 points, or 1.31 per cent, to 22,949.56. Mainland China's Shanghai composite index was up 22.84 points, or 0.84 per cent, to 2,728.02. _On Thursday, the TSX was down 8.38 points, or 0.06 per cent, to 13,519.50. The Dow Jones fell 41.59 points, or 0.34 per cent, to 12,248.55. The Nasdaq rose 4.12 points, or 0.15 per cent, to 2,773.31.
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