(RTTNews.com) - After a weak start, the Canadian stock market has inched back into positive territory in early trade Friday. Commodity prices are little changed this morning, leading to some mixed trading in the energy and gold sectors. Investors are largely focused on European politics, and the U.S. jobs report at the end of the trading week.
Markets in Europe are trading solidly in positive territory Friday after the formation of a new government in Italy. Italy's anti-establishment Five Star Movement and the far-right League reached a deal to form a populist government, helping avert the prospect of a snap election.
Meanwhile, Spanish Prime Minister Mariano Rajoy was ousted by a no-confidence vote in Parliament. He will be replaced by Socialist leader Pedro Sanchez.
Markets on Wall Street are up modestly in early trade Friday after employment in the U.S. jumped by much more than anticipated in the month of May. The Labor Department said non-farm payroll employment surged up by 223,000 jobs in May after climbing by a downwardly revised 159,000 jobs in April.
Economists had expected employment to increase by 188,000 jobs compared to the addition of 164,000 jobs originally reported for the previous month.
With the jump in employment, the unemployment rate edged down to 3.8 percent in May from 3.9 percent in April. The unemployment rate had been expected to come in unchanged.
The benchmark S&P/TSX Composite Index is up 2.92 points or 0.02 percent at 16,064.42.
On Thursday, the index closed up by 12.84 points or 0.08 percent, at 16,061.50. The index scaled an intraday high of 16,064.40 and a low of 15,979.60.
The Capped Information Technology Index is gaining 0.63 percent. Constellation Software (CSU.TO) is climbing 1.88 percent.
The Energy Index is rising 0.33 percent. Crude oil prices are lower Friday morning even after the government said U.S. oil inventories dropped 4.6 million barrels last week.
Cenovus Energy (CVE.TO) is climbing 0.66 percent and Suncor Energy (SU.TO) is gaining 1.00 percent. Imperial Oil (IMO.TO) is higher by 0.14 percent and Canadian Natural Resources (CNQ.TO) is rising 0.62 percent. Husky Energy (HSE.TO) is advancing 0.24 percent.
The Capped Industrials Index is up 0.33 percent. Canadian National Railway (CP.TO) is climbing 0.35 percent and Finning International (FTT.TO) is rising 2.39 percent. WestJet Airlines (WJA.TO) is adding 0.10 percent.
The heavyweight Financial Index is decreasing 0.36 percent. Toronto-Dominion Bank (TD.TO) is losing 0.89 percent and Royal Bank of Canada (RY.TO) is surrendering 0.15 percent. Canadian Imperial Bank of Commerce is falling 0.30 percent and National Bank of Canada (NA.TO) is weakening by 0.52 percent. Bank of Montreal (BMO.TO) is declining 0.35 percent and Bank of Nova Scotia (BNS.TO) is decreasing 1.71 percent.
The Gold Index is decreasing 0.32 percent. Gold prices are lower Friday after the release of the U.S. jobs report for May.
Goldcorp (G.TO) is down 0.54 and Eldorado Gold (ELD.TO) is lower by 1.36 percent. Kinross Gold (K.TO) is decreasing 1.28 percent and IAMGOLD (IMG.TO) is surrendering 0.49 percent. B2Gold (BTO.TO) is weakening by 1.13 percent and Barrick Gold (ABX.TO) is falling 0.18 percent.
On the economic front, China's manufacturing sector logged a moderate expansion in May, as seen in April, survey data from IHS Markit showed Friday. The Caixin Purchasing Managers' Index remained unchanged at 51.1 in May, while it was forecast to improve slightly to 51.2.
The upturn in the Eurozone manufacturing sector showed further signs of cooling in May, as initially estimated, final data from IHS Markit showed Friday. The factory Purchasing Managers' Index fell to a 15-month low of 55.5 from 56.2 in April. The score matched the flash estimate of 55.5.
The UK manufacturing sector expanded at a faster pace in May, survey data from IHS Markit and Chartered Institute of Procurement & Supply showed Friday. The manufacturing Purchasing Managers' Index rose unexpectedly to 54.4 in May from a 17-month low of 53.9 in April. The score was expected to drop to 53.5.
In commodities, crude oil futures for June delivery are down 0.51 or 0.76 percent at $66.53 a barrel.
Natural gas for June is up 0.006 or 0.20 percent at $2.958 per million btu.
Gold futures for June are down 5.60 or 0.43 percent at $1,299.10 an ounce.
Silver for July is up 0.007 or 0.04 percent at $16.465 an ounce.
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