Gold miners drag Toronto Stock Exchange down after U.S. jobs data : Exchange fell Friday after strong U.S. jobs report revived fears the U.S. Federal Reserve can be set to push back his recovery, the concern that both hit and gold mining share prices.
Here we give the details below. Gold shares fell nearly 3 percent as the number of jobs refuge appeal of precious metals declined. Barrick Gold Corp. the largest gold producer in the world, has about 5 percent of its market value lost and reached its lowest level in about 21 years.
U.S. data on Friday showed job growth was stronger than expected in June, and that the operation of the unit in the previous two months were higher than initially reported."This is good news for the economy, but bad news for people who think that quantitative easing will always be there. This is not the case," said Irwin Michael, portfolio manager at ABC Funds.
"Once you get that the economy is getting better results, tangible proof you do not want the Fed delve too much," he added. "You want to see the economy stronger in itself."Toronto Stock Exchange Index S & P / TSX parts. GSPTSE closed 31.75 points, or 0.26 percent, to 12,134.91.
Six of the 10 major sectors of the index were in the red. The primary sector, which includes mining stocks, fell the most among the major groups, paying 1.6 percent. Most commodity prices fell Friday as the number of jobs the U.S. dollar, which made U.S. products more expensive price have pushed. Prospectors, in particular, have reduced the price of precious metals fell as the dollar rose. Barrick dropped to $ 14.57 CA, and at the beginning of the session to the lowest level since May 1992, Goldcorp Inc. lost 1.4 percent to 25.46 CAD.
"You see a lot of volatility in the sector in the future," said Marcus Xu, a portfolio manager at my Capital Management Corp. in Vancouver. "If an investor is like gold at the moment, when it fell a little, it is better to buy real estate, and not the (stock)," he added. "You have to support. A very high price of gold to the assessment of a number of these companies"
Telecommunications providers yield of 0.5 percent. Rogers Communications Inc. fell nearly 1 percent to $ 40.84 CA. The energy stocks rose higher, and received funding of 0.1 percent. In the financial group, Bank of Montreal added 0.7 percent to C $ 61.61.
Number of jobs offered a sign that the U.S. economic recovery is gaining momentum and could prompt the Fed to tighten this year. Monetary policy Some on the market, however, is betting that the Fed's bond purchases to expand or strengthen, said Xu. Investors' should be more focused on what happens to the economy as a whole, that the Fed will do, "he added." Ultimately, the market can operate on its own, without the support of the Fed. "
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