PREVIOUS TRADING DAY EVENTS 06 April 2023

Announcements 

Employment change in Canada showed an increase of 34.7K which was way above the estimate, causing a surprise and signalling that the expectations of an economic slowdown are false.

The unemployment rate remained steady at 5, near a record low. The high interest rates set by the Bank of Canada BOC may not have boosted the borrowing costs high enough when considering these figures.

Next week, on the 12th of April, BOC is scheduled to set rates again. Since the 8th of March, BOC has paused the rate hikes. They kept borrowing costs unchanged for the first time in a year. Job gains, high output growth and above target inflation could push the BOC to implement a tightening policy.

Bad news for the Bank of Canada was good news for Canadian workers in March, Royce Mendes, head of macro strategy at Desjardins Securities, said in a report to investors. Theyll keep the door open to more hikes, but the recent banking sector turmoil raises the bar to unleash any more rate increases.

Although todays report isnt enough to get the Bank off the sidelines, the fact that nothing so far seems to be able to crack the Canadian jobs market juggernaut must be worrying, James Orlando, an economist at TorontoDominion Bank, said in a report to investors.
Source httpswww.bloomberg.comnewsarticles20230406hiringblowspastexpectationsagainintightcanadajobsmarket

All U.S. indexes closed the trading day higher after a quite volatile…