FX.co ★ Bay Street Likely To See Some Early Volatility; Canadian, U.S. Jobs Data In Focus

Uncertain Asian and European market indicators suggest a potentially rocky start for Canadian stocks on Friday. However, forthcoming jobs reports from the U.S. and Canada could significantly influence investor sentiment. The data from these reports could provide helpful hints about potential interest rate adjustments by the Bank of Canada and the Federal Reserve at their imminent monetary policy summits throughout the year.

The U.S. non-agricultural payroll report for March is scheduled for release at 8:30 AM ET, with economists currently forecasting an increase of 200,000 jobs in March, following February's robust 275,000 spike. The unemployment rate is projected to remain steady at 3.9%.

Similarly, the March jobs data for Canada is due at 8:30 AM ET. The Canadian job market expanded by 40,700 in February 2024, a slight increase over January's 37,300 jobs created. However, the unemployment rate in Canada rose marginally to 5.8% in February 2024, up from 5.7% in January.

There are also plans to release a report on the average hourly wages at 8:30 AM ET.

Then, at 10 AM ET, the Ivey Business School will disclose the Ivey Purchasing Managers Index reading for March. The index, which assesses economic activity in Canada, slipped to 53.9 in February 2024, down from 56.5 in January. Nonetheless, this marks the seventh successive month of economic growth in Canada.

After reaching an all-time high, the Canadian market receded and finished weakly on Thursday, as traders pared down their positions in anticipation of critical Canadian and U.S. jobs reports. The S&P/TSX Composite Index, having ascended to 22,239.05, slipped to 22,00.98 before concluding at 220,051.79, resulting in a decrease of 60.67 points, or 0.27%.

Asian stocks took a cue from Wall Street's previous night declines, finishing lower on Friday. Hawkish remarks from a trio of Federal Reserve policymakers and rising oil prices have fueled uncertainty about the U.S. interest rate outlook.

European stocks have also been significantly impacted in a negative way Friday afternoon, burdened by hawkish rhetoric from several Federal Reserve officials and escalating tensions in the Middle East.

In commodities, West Texas Intermediate Crude oil futures have dipped slightly, currently valued at $86.59 per barrel.

Gold futures have seen a slight increase of $2.60 or 0.11%, to stand at $2,311.10 an ounce. Meanwhile, silver futures have dropped by $0.382 or 1.4%, to $26.865 an ounce.