04.09.202612:57:55UTC+00TSX Futures Edge Lower After Jobs Data

Canadian equity futures slipped on Friday after the release of weaker-than-expected domestic labor data and a stronger US jobs report. Canadian employment fell by 41,700 in August, sharply missing forecasts for a 15,000 increase and reversing part of July’s 75,100 gain. The softer labor figures could justify a more dovish stance from the Bank of Canada. Still, after holding rates steady on Wednesday, Governor Tiff Macklem reiterated that policymakers remain ready to raise borrowing costs again if inflation stays elevated.

In contrast, US nonfarm payrolls rose by 162,000, roughly triple the consensus estimate. The upside surprise strengthened expectations for a Federal Reserve rate hike in September, weighing on credit-sensitive sectors. Gold prices declined, dragging down mining stocks that had been key supports for the index in recent months. Oil prices also moved lower, pressuring energy producers but easing some concerns over energy-related inflation pressures.