Canadian Stocks Ends Flat Amid Payroll Loss, Tariff Uncertainty

(RTTNews) - Canadian stocks closed roughly flat on Friday amid mixed economic data indicating a decrease in payroll employment and an unchanged jobless rate against the backdrop of the ongoing tariff war with the US.

After opening just above yesterday's close, the benchmark S&P/TSX Composite Index gained momentum until early afternoon, reaching an intra-day high of 27,859.93. The index subsequently fell into negative territory before closing at 27,758.68, down by 2.59 points (or 0.01%).

US tariffs on its major trading partners took effect at midnight on Thursday and traders are focusing on the impact the tariffs are going to create in the global economic landscape.

WTO and IMF data showed today that the US tariff rate now averages 20.1%, the highest level since the early 1910s. While some of the major partners, namely the EU, Japan, and South Korea have struck a deal, negotiations with other nations are underway.

Canada is now slapped with 35% duties on many of its exports to the US, though a majority of the products are currently exempted through Canada-United States-Mexico-Agreement.

PM Mark Carney is scrambling to rebuild the nation's economy through dialogue with the US on one side and by exploring new marketplaces outside the US on the other.

Data released by Statistics Canada revealed that the unemployment rate in Canada remained unchanged from the previous month at 6.9% in July with 23.8% of those classified as long-term unemployed.

Youth unemployment rose to 14.6%. Canada's employment fell by 40,800 jobs in July following an increase of 83,100 jobs in June.

Employment was down across several industries. However, it rose in transportation and warehousing.

Full time employment in Canada decreased by 51,000 in July, the first drop in four months. Part time employment in Canada increased by 10,300, slowing sharply from a 69,500 jump in June.

Labor force participation rate in Canada decreased to 65.20% in July.

In the US, after Fed Governor Adriana Kugler's abrupt exit, Trump has stepped up reshaping the board. Yesterday, he nominated Council of Economic Advisers' Chairperson Stephen Miran to replace Ms. Kugler.

The news about President Donald Trump revamping the Fed has triggered rate cut hopes.

A Bloomberg report suggested that the Fed governor Christopher Waller has emerged as the top pick for replacing current Chair Jerome Powell whose term ends in May 2026.

Major sectors that gained in today's trading were Communication Services (1.40%), Healthcare (1.06%), IT (0.70%), and Consumer Staples (0.65%).

Among the individual stocks, Quebecor Inc (2.83%), Chartwell Retirement Residences (1.94%), Open Text Corp (10.01%), Saputo Inc (8.92%), and Jamieson Wellness Inc (7.21%) were the prominent gainers.

Major sectors that lost in today's trading were Real Estate (0.04%), Utilities (0.08%), Financials (0.19%), and Consumer Discretionary (1.03%).

Among the individual stocks, Choice Properties REIT (1.04%), Boralex Inc (5.23%), Canadian Tire Corp (3.45%), and Dollarama Inc (1.25%) were the notable losers.