PREVIOUS TRADING DAY EVENTS 06 Oct 2023

Job growth in Canada reached high levels, more than tripling expectations by adding 63K jobs in September with higher wages. The unemployment rate remained unchanged at 5.5 for a third consecutive month. The average hourly wage for permanent employees rose 5.3 from September 2022, up from the 5.2 annual rise in August.

That employment report today really blew away market expectations. Wage growth is also beating market expectations, said Michael Greenberg, a portfolio manager for Franklin Templeton Investment Solutions. Despite the aggressive rate hikes by the Bank of Canada, clearly demand remains strong and companies continue to hire. This suggests we could well see another rate hike in November or December, Greenberg said.

Wages are just going off the charts, Holt said. With wage numbers like this and the fact that we havent had a soft patch on core inflation measures in Canada like theyve had in the U.S., I would think were still in hike mode in October.

Source httpswww.reuters.comworldamericascanadajobgainstriplesexpectationsseptemberwagegrowthaccelerates20231006

U.S. job growth also surged in September. The actual number of NF Payrolls was reported way higher than expected causing market turmoil. Nonfarm payrolls increased remarkably by 336K jobs last month. This high increase in employment suggests that the labour market remains strong enough for the Federal Reserve to raise interest rates this year, though wages…