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Feb job additions beat expectations
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Financials stocks slump to two-month low
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Bank of Montreal falls on deal for Loyalty Ventures unit
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TSX slumps 0.7%
By Johann M Cherian March 10 (Reuters) - Canada's benchmark stock index extended losses on Friday, dragged down by banks, after data reflecting a resilient labor market refueled investor concerns on whether the Bank of Canada (BoC) would keep its monetary tightening campaign suspended. A Statistics Canada report showed that the economy added a net 21,800 jobs in February, compared with 150,000 additions in the previous month. Analysts polled by Reuters had forecast a net gain of 10,000 jobs. At 10:27 a.m. ET (1527 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 132.38 points, or 0.66%, at 19,954.34. "The data points to a strong labor market and that stresses the need that the BoC may still need to raise interest rates further," said Angelo Kourkafas, investment strategist at Edward Jones Investments. Money markets are almost fully pricing in another rate hike by September. The rate-sensitive financials sector slumped 1.4% to a two-month low, while banks fell 1.3%. The impact on banks is a global concern on whether the financial system is starting now to feel the effects of the prior rate hikes by central banks, Kourkafas said. Across the border, U.S. stock indexes fell on a selloff in bank shares after SVB Financial's efforts to raise capital sparked worries about the sector's health. The TSX is heading for its worst week in five months, with all of its 10 major sectors in the red, as mixed economic data from China, uncertainty on the outlook for interest rate hikes and a global rout in the financial sector wiped out any appetite for risk among investors. Among company news, Bank of Montreal shed 1.2% after it said it would acquire Loyalty Ventures' subsidiary's rewards program AIR MILES for an undisclosed amount. Loyalty Ventures fell 54.2% in U.S. trading. (Reporting by Johann M Cherian in Bengaluru; Editing by Shilpi Majumdar)
