The S&P/TSX Composite Index closed lower on Friday ahead of the Labor Day holiday weekend as weakness in energy and financial stocks outweighed gains in industrials and utilities, while investors assessed a surprise decline in Canadian employment and stronger US jobs growth.
The index closed down 119.32 points, or 0.3%, at 36,513.8. Energy led decliners, down 1.0%, followed by Financial, down 0.3%. Industrials and Utilities were up 0.7% each.
The Battery Metals Index, which includes companies listed both on the TSX and TSX Venture Exchange, jumped 1.6%.
In commodities, West Texas Intermediate (WTI) and Brent crude edged higher on Friday as renewed hostilities between the US and Iran and reduced vessel traffic through the Strait of Hormuz kept concerns over Middle East oil supplies in focus. October WTI crude oil contract settled up $0.18, or 0.2%, at $91.48 per barrel, while November Brent oil was last seen up $0.48, or 0.5%, at $96.00 per barrel.
Meanwhile, December Comex gold futures sked 1.3%, or $57.60, to $4,482.30 per ounce at last look.
In currencies, the US dollar edged higher 0.3% against the Canadian dollar, with USD/CAD at 1.3834 at last look.
On the economic front, Canada lost 42,000 jobs, or 0.2% month over month, in August, while the unemployment rate was unchanged at 6.4%, Statistics Canada reported in its Labour Force Survey (LFS) released on Friday. August's employment drop came as a surprise, as a Bloomberg survey saw a 15,000 gain. The unemployment rate was as expected.
By sector, employment fell most sharply in business, building and other support services, which shed 20,000 jobs, or 2.8%. Average hourly wages rose 2.0% year over year in August to CA$37.02, slowing from 2.8% growth in July and marking a second consecutive month of deceleration, according to agency.
"It is worth noting that the manufacturing sector, which we closely monitor amid trade tensions, gained 22,000 jobs during the month, following an 11,000 increase in July," National Bank of Canada wrote in a note.
Whereas, the US economy added 162,000 jobs last month, the biggest monthly job gain since March, adding to other signs that point to a resilient economy, including "healthy" vehicle sales, said Economist Ksenia Bushmeneva in a TD Economics note.