Canadian Stocks Are Climbing On Jobs Data - Canadian Commentary

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(RTTNews.com) - The Canadian stock market got off to a weak start Friday, but has since climbed into positive territory. Traders remain concerned over global trade, after the U.S. imposed tariffs on 34 billion dollars worth of Chinese imports took effect and China vowed to make a necessary counterattack in equal measure.

However, a pair of better than expected jobs reports has investors in an upbeat mood. According to a report from Statistics Canada this morning, the Canadian economy generated 31,800 jobs in June. Analysts had expected an increase of 24,000 jobs.

Markets on Wall Street are little changed Friday morning, despite the upbeat U.S. jobs report. Employment in the U.S. increased by more than expected in the month of June, according to a report released by the Labor Department on Friday.

The report said non-farm payroll employment jumped by 213,000 jobs in June after surging up by an upwardly revised 244,000 jobs in May.

Economists had expected employment to climb by 195,000 jobs compared to the addition of 223,000 jobs originally reported for the previous month.

Despite the stronger than expected job growth, the unemployment rate rose to 4.0 percent in June from 3.8 percent in May. The unemployment rate was expected to be unchanged.

Markets in Europe were modestly positive Friday morning, but the majority have now slipped into the red.

The benchmark S&P/TSX Composite Index is up 21.62 points or 0.13 percent at 16,288.23.

On Thursday, the index closed down by 38.11 points or 0.23 percent, at 16,266.61. The index scaled an intraday high of 16,330.87 and a low of 16,235.58.

The Capped Telecommunication Services Index is up 0.92 percent. BCE (BCE.TO) is gaining 0.91 percent and TELUS (T.TO) is rising 0.58 percent. Rogers Communications (RCI-B.TO) is advancing 1.29 percent.

The Capped Information Technology Index is gaining 0.33 percent. BlackBerry (BB.TO) is rising 0.31 percent and Descartes Systems Group (DSG.TO) is up 0.76 percent. Sierra Wireless (SW.TO) is climbing 0.53 percent and Constellation Software (CSU.TO) is adding 0.10 percent.

The Energy Index is rising 0.12 percent. Crude oil prices are nearly flat Friday morning as traders continue to weigh yesterday's surprising U.S. oil inventories report.

Crude inventories rose 1.2 million barrels in the week to June 29, compared with analysts' expectations for a decrease of 3 million barrels, according to the EIA.

Cenovus Energy (CVE.TO) is rising 1.10 percent and Canadian Natural Resources (CNQ.TO) is gaining 0.94 percent. Husky Energy (HSE.TO) is climbing 1.35 percent.

The heavyweight Financial Index is increasing 0.09 percent. Royal Bank of Canada (RY.TO) is gaining 0.07 percent and Bank of Montreal (BMO.TO) is higher by 0.30 percent. National Bank of Canada (NA.TO) is rising 0.70 percent and Bank of Nova Scotia (BNS.TO) is adding 0.07 percent. Canadian Imperial Bank of Commerce (CM.TO) is up 0.14 percent.

The Gold Index is decreasing 0.41 percent. Gold prices are slightly lower Friday morning as traders weigh jobs data and the Federal Reserve minutes.

Goldcorp (G.TO) is lower by 0.38 percent and Eldorado Gold (ELD.TO) is losing 0.73 percent. Barrick Gold (ABX.TO) is falling 0.06 percent and IAMGOLD (IMG.TO) is surrendering 0.25 percent. Yamana Gold (YRI.TO) is declining 1.94 percent.

The Capped Healthcare Index is lower by 0.77 percent. Valeant Pharmaceuticals International (VRX.TO) is falling 0.30 percent and Concordia International (CXR.TO) is weakening by 3.70 percent.

On the economic front, the Canadian trade deficit widened to C$2.77 billion in May, from C$1.86 billion in April. Expectations had been for a deficit of C$2.05 billion.

Germany's industrial production recovered notably in May after a weaker start to the year, official data showed Friday.

Industrial output grew 2.6 percent month-on-month in May, reversing a revised 1.3 percent drop in April, Destatis reported. This was the biggest expansion in six months. Output was forecast to grow marginally by 0.3 percent.

France's foreign trade gap widened in May, as exports fell faster than imports, figures from the Customs Office showed Friday. The trade deficit rose to EUR 6.0 billion in May from EUR 5.21 billion in the previous month.

UK labor productivity decreased in the first quarter as a result of the continued strength in employment growth combined with weaker output growth, the Office for National Statistics showed Friday. Labor productivity slid 0.4 percent in the first quarter, which was the first fall in output per hour since the second quarter of 2017.

UK house prices increased at a slower pace in June, data from the Lloyds bank subsidiary Halifax and IHS Markit showed Friday. House prices grew only 0.3 percent on month in June, following May's 1.7 percent increase. Prices were expected to gain 0.2 percent.

In commodities, crude oil futures for August delivery are up 0.29 or 0.40 percent at $73.23 a barrel.

Natural gas for August is up 0.004 or 0.14 percent at $2.841 per million btu.

Gold futures for August are down 2.10 or 0.17 percent at $1,256.70 an ounce.

Silver for September is down 0.082 or 0.51 percent at $16.015 an ounce.

Read the original article on RTTNews (http://www.rttnews.com/2911537/canadian-stocks-are-climbing-on-jobs-data-canadian-commentary.aspx)

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This article appears in: Stocks , World Markets , Politics , Oil
Referenced Symbols: ABX ,

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