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Reassessment of BoC Rate Cut Expectations After Robust Canadian Jobs Report

The latest Canadian jobs data has led to a significant shift in market expectations regarding the Bank of Canada’s (BoC) interest rate decisions. Here’s a concise overview: Unexpected Job Surge : April saw the addition of 90,400 jobs , far surpassing the anticipated 20,000 . This robust employment growth has caused money markets to reassess the likelihood of an imminent rate cut by the BoC. Rate Cut Probabilities Altered : Prior to the jobs report, the probability of a rate cut in June was 58% , which has now decreased to below 50% . Markets are now leaning towards a cut in July, with a 70% chance. Economic Indicators : Despite the job increase, wage growth has decelerated to 4.8% annually, the slowest in ten months, hinting at potential slack in the labor market. Market Movements : The Canadian dollar and government bond yields reacted sharply to the news, with the dollar appreciating and the 2-year bond yield rising by 10 basis points . This data has not only influenced market pred
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Stock Markets Today: North American markets close higher



The Toronto Stock Exchange (TSX) 300 Composite Index closed at 20,290.41, up by 1.32% or 265.27 points from the previous close. The S&P/TSX 60 Index rose by 1.37% or 16.38 points to close at 1,214.77The S&P/TSX Venture Composite Index increased by 0.93% or 5.43 points to close at 588.15.

The TSX 300 Composite Index’s gain was driven by the rise in energy and financial stocks, which were up by 2.4% and 1.7%, respectively. The increase in oil prices due to the hurricane Ida’s impact on oil production in the Gulf of Mexico was one of the reasons for the rise in energy stocks. The financial sector’s rise was due to the Bank of Montreal’s announcement of a dividend increase and share buyback program.

In the US, the Dow Jones Industrial Average (DJIA) closed at 35,335.71, up by 0.37%, while the S&P 500 index closed at 4,486.23, up by 0.10% 3. The Nasdaq Composite index closed at 15,235.73, down by 0.17% .





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