By Mike Keerma
The U.S. economy added 213,000 new jobs in June, beating consensus
expectations and underpinning positive market performance for the week.
Together with an unemployment rate of just 4%, the pace of job creation
indicates strong underlying economic growth, as wage pressures remain
contained. Economic fundamentals overshadowed fresh anxieties over
President Donald Trump’s imposition of billions of dollars in new tariffs
on Chinese goods, with countervailing tariffs imposed by China. The
S&P 500 Composite advanced 1.5% on the week, while the
Nasdaq Composite Index gained 2.4%. The Canadian economy added 31,800 new jobs in June, with the
unemployment rate holding steady at 5.8%. The strong jobs data suggest that
the Bank of Canada will hike its key lending rate, following in lock-step
with the U.S. Federal Reserve’s rate hike last month. Toronto’s
S&P/TSX Composite Index gained 0.6% on the week, with financials, energy, and telecommunications
issues providing support to the market.
Crude oil backed off 0.7% on the week, while
gold held steady, just above breakeven.
Check Fund Library’s
Market Activity page regularly for active updates on key market indexes and commodities.
– Follow Fund Library on Twitter for daily
information and updates.
© 2018 by Fund Library. All rights reserved. Reproduction in whole or in
part by any means without prior written permission is prohibited.
The foregoing is for general information purposes only and is the opinion
of the writer. No guarantee of investment performance is made or implied.
It is not intended to provide specific personalized advice including,
without limitation, investment, financial, legal, accounting or tax advice.