Strength in base metals and energy inventories helped Canada’s main inventory index post modest gains, while U. S. markets also rose.
The S-Composite Index
In New York, the Dow Jones trading average rose 130. 49 points to 36,247. 87. The S-Index
The Canadian dollar traded for 73.59 cents U.S. compared with 73.55 cents U.S. on Thursday.
The January crude oil contract rose $1. 89 to $71. 22 per barrel and the January natural fuel contract fell less than a cent to $2. 58 per mmBTU.
The February gold contract was down $31. 90 at $2,014. 50 an ounce and the March copper contract was up 3 cents at $3. 83 a pound.
The Canadian Press
New studies suggest that Saskatchewan’s oil fields emit a potent greenhouse fuel at a higher rate than almost anywhere else in North America.
Matt Johnson of Carleton University’s Energy and Emissions Research Laboratory says Saskatchewan’s methane emissions have declined in years.
But he says most of that drop seems to have come from production cuts, not industry improvements.
Worse, their conclusion is that about 2. 6 percent of the plant fuel produced in the province escapes into the atmosphere, where it warms the climate about 80 times more than carbon dioxide.
This rate is much higher than what is allowed in the U. S. and European regulatory proposals.
Johnson says it doesn’t make sense to talk about a minimum percentage of methane emissions because old measurements aren’t reliable.
Like their previous studies in Alberta and British Columbia, they found that methane emissions are underestimated by about 50 percent.
The Canadian Press
The Government of Panama has officially ordered First Quantum Minerals Ltd. to end all operations at its $10 billion copper mine in the country, according to the Canadian company’s unit.
Panama’s Ministry of Commerce and Industry ordered the steelmaker “to cease its mining, processing, refining, transportation, export and sales activities,” the company said in a statement Friday. This resolution follows a Supreme Court ruling that struck down the law governing Copper. Panama operating license.
The Cobre Panama mine has been at the center of many protests that erupted following the resolution to approve a new decades-long mining contract in October. President Laurentino Cortizo laid out a plan to close the mine in November.
First Quantum is also seeking permission from Panama’s Ministry of Labor to lay off more than 4,000 of the site’s 7,000 workers “for justified economic reasons. “Some will remain on-site to “maintain protection of amenities and environmental loss or damage within the site. “mining zone,” the company said.
Shares of the Vancouver-based firm fell as much as 2.1 per cent in Toronto, touching its lowest intraday price since June 2020.
Bloomberg
The federal government says it has recovered $40 million from Medicago, a now-defunct Quebec vaccine developer, and that the intellectual assets will remain in Canada under the direction of a new company.
In the early days of the COVID-19 pandemic, they granted Medicago a $173 million advance to scale up and produce a plant-based vaccine in Quebec City.
The company’s Japanese parent company, Mitsubishi Chemical Group, shut down Medicago operations in February as demand for vaccines collapsed.
Although Medicago’s vaccine has been approved for use in Canada, it has been approved through the World Health Organization due to the company’s ties to tobacco giant Philip Morris.
The agreement between Canada and Mitsubishi Chemical Group will move research, intellectual assets and apparatus to a new operation: Aramis Biotechnologies.
Aramis Biotechnologies is also based in Quebec City and is led by former Medicago employees.
The Canadian Press
United States Treasury yields rose as traders pared expectations for the Federal Reserve to ease monetary policy aggressively next year after a better-than-forecast jobs report.
Benchmark two-year yields, the highs strongly tied to the U. S. central bank’s policy outlook, rose 13 basis points, the biggest such increase in seven weeks.
Swap investors have reduced their bets on the extent of the Federal Reserve’s rate cut next year, discounting about 110 core easing issues from more than 120 core issues. The U. S. jobs report said nonfarm payrolls rose to 199,000 last month, compared with economists’ median estimate of 185,000, while the unemployment rate fell to 3. 7 percent, following a slight increase in the activity rate.
“It’s a smart report,” Michael Darda, lead economist at Roth MKM, told Bloomberg Television. “The Fed is going to take a look at it and probably won’t feel forced at all to settle for the rate cuts that the market has priced in. “
Friday’s revaluation vindicated strategists who had said the bond market was getting too far ahead of the central bank by pricing in rate cuts as early as March.
“The report will stop other people from talking about rate cuts,” said Gang Hu, managing partner at Winshore Capital Partners. “The trend of the hard labor market is weakening, although not as much as other people thought,” while inflation also does not support an easing, Hu said.
On Wall Street, stocks stay afloat with the S
In Toronto, the S&P/TSX composite index was up 0.03 per cent at 20,284.08.
Bloomberg
Bloomberg
Stocks rose as strong data on U. S. employment and client confidence reinforced the narrative of a comfortable landing. Bond yields remained high on the assumption that bets on the Federal Reserve’s cuts next year may have gone too far.
Across Wall Street, the prevailing view is that while economic strength makes investors less worried about a recession (at least for now), it also means that the Federal Reserve would possibly have to keep rates high longer. betting that the central bank would pivot as early as March. Swap contracts now show a 40% chance of this happening, up from more than 50% before the report.
After a series of figures pointing to a slowdown on the employment front, Friday’s figures showed an unforeseen recovery in employment. Nonfarm payrolls rose to 199,000 last month, the unemployment rate fell to 3. 7 percent and monthly wage expansion beat estimates. A separate report showed that U. S. customer confidence rebounded sharply in early December (beating all forecasts) as households lowered their inflation expectations for the coming year, something not seen in 22 years.
Slowing inflation and jobs data over the past month convinced investors that the Federal Reserve was done raising interest rates and prompted bets on cuts to at least 125 core issues over the next 12 months. The Federal Reserve is observing an era of self-imposed calm ahead of next week. monetary policy meeting, which also coincides with new knowledge about inflation.
“Today’s figures may derail hopes that the Fed will cut rates faster than later,” said Richard Flynn of Charles Schwab UK. “This month’s jobs report doesn’t reflect the cooling that the market is likely expecting, so it may just move “There are things ahead in terms of what we can expect from Fed policy in the coming months. “
On Wall Street, the S Index
In Toronto, the S-Composite index
Bloomberg
CWB Financial Group increased its dividend after reporting fourth-quarter earnings from a year earlier.
The Edmonton bank says it will pay a quarterly dividend of 34 cents per share, an increase of one cent.
The increase in shareholder payout came as CWB said its regular shareholders’ net source of income amounted to $76. 8 million, or 80 cents per diluted share, for the quarter ended Oct. 31, compared with $67. 7 million, or 72 cents per diluted share. with diluted participation, one year earlier.
Revenue was $291. 8 million, compared to $279. 8 million in the year-ago quarter.
The CWB reported a provision for credit losses of $9. 8 million for its fourth quarter, up from $12. 2 million in the same quarter last year.
On an adjusted basis, CWB says it earned 94 cents consistent with the percentage in its recent peak quarter, compared with adjusted earnings of 88 cents consistent with the percentage a year earlier.
“We expect strong currency effects in fiscal 2024 despite continued volatility in economic and market conditions,” Chris Fowler, CWB’s chief executive, said in a statement.
“Our outlook is supported by an increase in our operational efficiency from the reorganization initiatives we executed late this quarter, which will result in the redeployment of resources to priority activities consistent with our differentiated strategy.”
The Canadian Press
In the United States, employers added 199,000 jobs last month and the unemployment rate fell, further signs that the economy may simply make an elusive “soft landing,” in which inflation returns to the 2% target. United States Federal Reserve without causing a sharp fall.
Friday’s U. S. Labor Department report showed the unemployment rate fell from 3. 9% to 3. 7%, up from a five-decade low of 3. 4% in April.
November’s project creation is a reminder that many employers are still hiring, even though last month’s increase was inflated due to the return of some 40,000 striking former car painters and actors, who were not on the job in October but returned in November.
Still, the market for hard work is slowing, in the direction Federal Reserve officials want. The Federal Reserve raised its key short-term interest rate from near 0 to around 5. 4 percent, a 22-year high, leading to higher borrowing rates for consumers and businesses. and reduce inflation. Despite these headwinds, the economy and labor market continue to grow. Layoffs remain traditionally low.
When the Federal Reserve meets next week, it will be confident that it will keep its benchmark rate unchanged for the third time in a row, in light of easing inflationary pressures. For most Wall Street economists and investors, the Federal Reserve’s next step will be to cut rates, though that might not happen until the second half of 2024.
Even modest hiring is helping consumers, who are the source of the economy’s maximum expansion, keep spending. Reports of early grocery purchases for the holiday holidays showed a healthy expansion in online sales.
The Associated Press
Shares of Lululemon Athletica Inc. fell in premarket trading today after fourth-quarter earnings forecasts missed Wall Street estimates, a rare failure for the store whose functionality exceeds investors’ expectations.
The sportswear company’s sales expansion, while still physically powerful compared to most of its peers, is slowing as higher-income shoppers spend more on things like entertainment and entertainment than apparel. Lululemon said Thursday that holiday quarter earnings are expected to rise thirteenth. to 14% from a year ago, down from 19% expansion in the three-month period just ended.
Shares were down almost 3 per cent in pre-market. The stock’s strong performance this year — more than double the gain of the S&P 500 Index — has increased pressure for the company to keep up its pace of growth.
The store expects fourth-quarter earnings of between $3. 14 billion and $3. 17 billion, while analysts polled through Bloomberg expect an average of $3. 18 billion.
Learning
-Bloomberg
Stocks are steady today as trader await the pivotal U.S. jobs report out before the bell. The nonfarm payroll report is crucial for traders evaluating whether bets on Federal Reserve policy easing next year are justified — or have gone too far.
U.S. futures were flat this morning after big tech stock helped lift markets on Thursday. Canada’s S&P/TSX composite index closed up yesterday 4.30 points at 20,278.51.
Oil recovers but remains on track for the longest streak of weekly losses since 2018. Traders are worried about a global crude glut and doubt that the inconsistency with cuts through OPEC will be effective. West Texas Intermediate approached $71 after falling $11 in line with the penny over the next six sessions.
Need a reminder of yesterday’s headlines? Catch up here.
Additional reporting via The Canadian Press, The Associated Press and Bloomberg
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