Daily market snapshot

Published December 2, 2024
 Woman on couch looking at laptop

Monday 12/2/2024 p.m.

  • Stocks start the month mixed – The TSX closed lower, while major U.S. equity markets were up on Monday, with large-cap stocks leading small- and mid-cap stocks. Sector performance was mixed, as communication services and consumer discretionary stocks posted the largest gains. In global markets, Asia was up on China's manufacturing purchasing managers index (PMI) for November rising to 51.5, reflecting expansion and beating estimates calling for 50.5*. Europe was also higher, as the eurozone unemployment rate for October held steady at 6.3%, as expected. Bond yields were also mixed, with the 10-year Government of Canada yield down to 3.07% and the 10-year U.S. Treasury yield up to 4.19%. The U.S. dollar advanced versus major currencies. In the commodity space, WTI oil traded higher, while gold was down*.
  • Market to focus on the labour market this week – U.S. job openings will be released on Tuesday, with estimates pointing to a modest decline to 7.42 million in October, down from 7.44 million the prior month. Job openings have remained higher than total unemployment of about 7.0 million, although the excess has been steadily narrowing**. Total nonfarm payrolls for the U.S. will be released on Friday, with forecasts calling for 200,000 in November, up from just 12,000 that was impacted by weather and labor strikes in October. The unemployment rate is expected to tick up to 4.2%, from 4.1%*. These forecasts, if realized, reflect a resilient labour market that is gradually cooling, which is supportive of continued moderation in inflation and the soft-landing narrative, in our view.
  • Manufacturing readings beat estimates – The Markit Manufacturing Purchasing Managers' Index (PMI) rose to 49.7 in November, above forecasts calling for 48.8. The Institute for Supply Management (ISM) Manufacturing Index also rose to 48.4 November, beating estimates pointing to 47.5. PMI and ISM are diffusion indexes, with readings above 50.0 reflecting expansion. While both readings still reflect modest contraction, the trend has improved in recent months, which is supportive of resilient economic growth, in our view.

Brian Therien, CFA
Investment Strategy

Source: *FactSet ** U.S. Bureau of Labor Statistics

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