All eyes were on the Federal Reserve on Wednesday as the central bank approved plans to start cutting its bond buying program this month and end it by June, according to early estimates. Fed officials said they would cut the bank’s bond purchases by $ 15 billion per month in November and an additional $ 15 billion in December. The Fed’s announcement boosted sentiment on both Bay and Wall Street, with new record closes for all three major US indices and a near-record close for the TSX, which rose 95 points.
US stocks were mixed on Thursday as investors continued to analyze the Fed’s latest comments. The S&P 500, Nasdaq and TSX posted modest gains, while the Dow lost 33 points.
Another positive week for North American markets For the four trading days covered in this report, the Dow Jones rose 305 points to close at 36,124, the S&P 500 added 75 points to settle at 4,680, while the tech-rich Nasdaq gained jumped 442 points to close at 15,940. In Canada, the TSX climbed 305 points to end at 21,342.
Job growth in Canada slows in October, but continues at a strong pace
The Canadian labor market continued to grow, albeit at a slower pace than expected in October, as retail businesses ramp up hiring over the holiday season. The economy added 31,200 jobs last month, slightly below consensus expectations for a gain of 41,600 and down from September’s reading of 157,100.
The unemployment rate fell to 6.7 percent while participation fell slightly to 65.3 percent, and hours worked rose 1 percent. October’s gain was entirely made up of full-time employment (+36,400) while part-time employment declined slightly (-5,200).
The scale of the sector was small, with most of the gains recorded in the retail sector, which returned to pre-pandemic employment levels with a net gain of 72,000 jobs. Employment in goods-producing industries fell by 6,200. The average hourly wage of permanent workers increased 2.1% from the previous year, which should reassure decision-makers at the Bank of Canada, who argue that broader price pressures are unlikely to trigger a spiral in labor costs.
Overall, the Canadian labor market has been in a tear since emerging from a third wave of COVID earlier this year, generating 600,000 net new jobs since May, about 30,000 more than in February 2020.
This report is provided to you for your information only and is not intended to provide personal investment advice. This report does not include or constitute an investment recommendation and does not take into account any particular investment objectives, financial conditions or the specific needs of individual clients. Any statement regarding future prospects may not be made. Before acting on this document, you should determine if it is appropriate for your particular situation and speak to your investment advisor.
The author (s) of the report and the supervisors of the Global Portfolio Advisory Group may own securities of the companies included in this document.
Scotia Capital Inc. is referred to as an “integrated” investment firm as we offer a wide range of corporate finance, investment banking, institutional trading and retail services and products. Accordingly, we recognize that there are inherent conflicts of interest in our business as we often represent both parties to a transaction, namely the buyer and the seller. While we have policies and procedures in place to manage these conflicts, we also disclose certain conflicts to you so that you are aware of them. Please note that from time to time we may have relationships with the companies referred to in this report.
The Global Portfolio Advisory Group has prepared this report by analyzing information from various sources. Information obtained in the preparation of this report may have been obtained from the Equity and Fixed Income Research Services of the Banking Services and Global Markets Division of Scotiabank. Information may also be obtained from Scotiabank Currency Research and Scotia Economics. In addition to information obtained from members of the Scotiabank group, information may be obtained from the following third party sources: Standard & Poor’s, Morningstar, Bloomberg, Credit Suisse AG, Perimeter Markets Inc. and FactSet. The information and opinions contained in this report have been compiled or obtained from sources believed to be reliable, but no representations or warranties, express or implied, are made as to their accuracy or completeness.
While the information provided is believed to be accurate and reliable, neither Scotia Capital Inc., which includes the Global Portfolio Advisory Group, nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of this information. . Neither Scotia Capital Inc. nor its affiliates accept any responsibility whatsoever for any direct or indirect loss arising from the use of this report or its contents.
Nothing in this report is or should be taken as a promise or representation about the future. The pro forma and estimated financial information contained in this report, if any, is based on certain assumptions and analyzes of the information available at the time the information was prepared, which assumptions and analyzes may or may not be correct. There is no representation, warranty or other assurance that the projections contained in this report will be realized.
The opinions, estimates and projections contained herein are those of Global Portfolio Advisory Group as of the date hereof and are subject to change without notice. For this reason, it cannot be guaranteed by The Bank of Nova Scotia or any of its subsidiaries, including Scotia Capital Inc. This report is not, and should not be construed as: (i) an offer sale or solicitation of an offer to buy securities and / or commodity futures; (ii) an offer to do business in any jurisdiction; or (iii) investment advice to any party. The products and services described here are only available where they can be legally provided. Scotia Capital Inc. and its affiliates and / or their respective officers, directors or employees may from time to time acquire, hold or sell securities and / or commodities and / or commodity futures referred to herein as principal or agent.
Trademarks are the property of their respective owners.
Copyright 2021 Scotia Capital Inc. All rights reserved.
This report is distributed by Scotia Capital Inc., a subsidiary of The Bank of Nova Scotia. Scotia Capital Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.
® Registered trademark of The Bank of Nova Scotia, used under license. Scotia Wealth Management® includes a range of financial services provided by The Bank of Nova Scotia (Scotiabank®); The Bank of Nova Scotia Trust Company (Scotiatrust®); Private Investment Counsel, a service of 1832 Asset Management LP; 1832 Asset Management US Inc .; Scotia Wealth Insurance Services Inc .; and ScotiaMcLeod®, a division of Scotia Capital Inc. Private and international banking services are provided in Canada by the Bank of Nova Scotia. Estate and trust services are provided by The Bank of Nova Scotia Trust Company. Portfolio management is provided by 1832 Asset Management LP and 1832 Asset Management US Inc. Insurance services are provided by Scotia Wealth Management Insurance Services Inc. Wealth advisory and brokerage services are provided by ScotiaMcLeod, a division of Scotia Capital Inc. International investment advisory services are provided in Canada by Scotia Capital Inc. Financial planning services are provided by The Bank of Nova Scotia, 1832 Asset Management LP and ScotiaMcLeod, a division of Scotia Capital Inc. Scotia Capital Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. Scotia Wealth Insurance Services Inc. is the insurance subsidiary of Scotia Capital Inc., a member of the Scotiabank group of companies. When discussing life insurance products, ScotiaMcLeod advisors act as life insurance agents (financial security advisors in Quebec) representing Scotia Wealth Insurance Services Inc.
Scotia Wealth Management comprises a range of financial services provided in the Bahamas by Scotiabank (Bahamas) Limited and The Bank of Nova Scotia Trust Company (Bahamas) Limited. International private banking services are provided in the Bahamas by Scotiabank (Bahamas) Limited, an entity registered with the Central Bank of the Bahamas. International investment advisory services are provided in the Bahamas by Scotiabank (Bahamas) Limited, an entity registered with the Securities Commission of The Bahamas. International wealth structuring solutions are provided in The Bahamas by the Bank of Nova Scotia Trust Company (Bahamas) Limited, an entity registered with the Central Bank of the Bahamas.
Scotia Wealth Management consists of international investment advisory services provided in Barbados by The Bank of Nova Scotia, Barbados Branch, an entity licensed by the Barbados Financial Services Commission.
Scotia Wealth Management comprises a range of financial services provided in the Cayman Islands by Scotiabank & Trust (Cayman) Ltd. International private banking services, international investment advisory services and international wealth structuring solutions are provided in the Cayman Islands by Scotiabank & Trust (Cayman) Ltd., an entity licensed by the Cayman Islands Monetary Authority.
Scotia Wealth Management consists of international private banking services provided in Peru by Scotiabank Peru SAA, an entity overseen by the Peruvian Superintendency of Banking and Insurance.