Loonie Slides on Job Losses as Technology Stocks Stabilize

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The Loonie is under pressure this morning after Canada’s September employment report showed unexpectedly steep job losses. Meanwhile, US index futures are rebounding as yesterday’s Technology selloff appears to have subsided. Energy prices are easing following White House comments suggesting it does not intend to attack Iran before next month’s US midterm elections. Investors are also preparing for earnings season to gather momentum next week.

Canada lost 68,000 jobs in September, compared with Street expectations for a 7,000 increase and the previous month’s 42,000 decline. The Loonie is down 0.5% following the report. In corporate news, Delta Air Lines reported earnings below expectations ($1.72 versus the Street’s $1.82) and lowered its guidance, citing rising fuel costs. Management indicated, however, that underlying travel demand remains robust.

NASDAQ futures are up 0.8%, recovering part of Thursday’s 1.3% decline, while Dow futures are edging up 0.1%. Overseas, the Hang Seng gained 1.8%, while the Nikkei slipped 0.1%. European markets are advancing, with the DAX up 1.3% and the FTSE up 1.2%.

Energy prices are retreating, with Crude Oil down 0.8%, holding above $90.00/bbl, and Brent Crude down 1.5%, falling back towards $102.50/bbl. Gasoline is down 1.3%, trading near $3.25/gallon. Metals are moving higher: Gold is up 1.3%, reclaiming $4,200/oz; Silver is up 2.0%; and Copper is up 1.9%, trading near $6.70/lb.

Treasury yields have eased, with the US 10-year yield dropping back towards 5.25% and the 30-year yield towards 5.60%. The US Dollar Index is up 0.2%, while the Euro is down 0.1%.

Looking ahead, earnings season ramps up Monday, with several major US banks set to report next week.

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