Published: Mon, October 08, 2018
Money | By Ralph Mccoy

Toronto and USA stocks lower in late-morning trading; Loonie lower

Toronto and USA stocks lower in late-morning trading; Loonie lower

That has some investors concerned that spiking interest rates could slow the economy.

EMini futures for the S&P 500 also lost 0.4 percent in Asian trade, while European bourses were seen starting mixed.

The Dow Jones Industrial Average rose 138 points, or 0.5 percent, to 26,912.

USA futures pointed to 0.4% opening losses for both the S&P 500 and the Dow Jones Industrial Average, after the latter benchmark hit a fresh record Wednesday. The Russell 2000 index was unchanged at 1,646. While that was its biggest loss since late June, it could have been worse: stocks were down nearly twice that much before a late rally.

Private companies tacked on 230,000 jobs last month, reaching their highest level since the 241,000 jobs added last February and far more than the addition of 168,000 jobs seen in August, according to fresh data from ADP - always seen as a pre-cursor to Friday's key non-farm payrolls report. The September total was probably reduced by the damage Hurricane Florence did to the Carolinas.

Fed fund futures for December 2019 sank to a contract low of 97.12, implying a rate of 2.88 percent.

Friday's data suggest the economy should keep growing at a strong clip, which means corporate profits should continue to grow.

Market participants will be looking closely for signs of wage growth in today's jobs number, especially in light of anecdotal indications of rising wages such as raising its minimum wage to US$15 (RM62.18) earlier this week.

The central bank has long stated that it's closely watching inflation and the pace of USA growth, and new signals of economic strength are commonly seen as emboldening them as they tighten monetary conditions.

'Whatever the Fed's concept of the neutral interest rate is, it must be rising, ' Bourgette said.

Lewis Hamilton on the brink of F1 championship after Suzuka win
But behind him, there was action aplenty, much of it focused on Vettel. "Even the most experienced drivers make mistakes". The German went for a gung-ho lunge on Verstappen as he slowed down from 190mph at the left-handed Spoon corner.

Slower Than Expected Job Growth in September
The year-over-year increase in the average hourly wage was 2.8 percent, that is down from 2.9 percent in last month's data. Regardless, those risks are unlikely to be reflected to any great degree in this morning's report.

Ronaldo ready to play for Juve amid rape allegation
Last week, Kathryn Mayorga filed a civil lawsuit in the USA saying she was raped by Ronaldo in Las Vegas in 2009. Another headline said "World of Juve shaken" after the club's share price plunged nearly 10 percent on Friday.

BONDS: Bond prices kept falling. The yield stood at 3.225 percent Friday, up 0.9 percent.

Mumbai: The rupee on Thursday crashed to a historic low of 73.81 to the dollar due to the twin-impact of capital outflows triggered by surging US Treasury yields and crude oil prices racing to a four-year high.

Investors fear higher costs for loans and mortgages will crimp growth.

J.C. Penney jumped 4.2 percent after naming a new CEO. Software platform Telaria Inc (NYSE:TLRA) was a top decliner after reporting lower-than-expected preliminary third-quarter results and slashing its full-year guidance. Technology shares fell the most, with the Nasdaq 100 Index notching its worst day since June following Bloomberg's report that China infiltrated American companies with hardware hacks.

The pan-European FTSEurofirst 300 index lost 0.99 percent and MSCI's gauge of stocks across the globe gained 0.02 percent.

The two-year rate was flat at 2.878 percent. The Nasdaq composite tumbled 1.8 percent to 7,879.51. Hong Kong's Hang Seng fell 0.2 percent.

The industrials sector rose 0.6 per cent, as Canadian Pacific Railway climbed 2 per cent.

Emerging currencies including the rupee bore the brunt during the day as investors shifted funds from riskier assets to safe bets like the United States dollar.

The gains were broad based with the euro falling back to $1.1476 after being as high as $1.1593 on Wednesday.

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