Toronto stock market to gain some momentum after North American jobs data

TORONTO – The Toronto stock market appeared likely to move higher Friday as jobs reports in both Canada and the United States came in better than anticipated, although neither blew by expectations.

The data was far more impressive south of the border, which raised hopes that the U.S. economy is headed towards a better second half of the year.

Dow Jones industrial futures were up 130 points at 15,046. The broader S&P futures added 15.1 points to 1,624.20, while the Nasdaq futures were up 29.25 points to 2,965.75.

The U.S. Labor Department said American employers added 195,000 jobs in June and hiring was more robust in the two previous months than earlier estimated, suggesting job growth is accelerating.

The report sent the U.S. dollar rocketing higher while the loonie pulled back on less encouraging domestic jobs data.

The Canadian dollar was down 0.51 of a cent to 94.54 cents US.

Statistics Canada says the official unemployment rate remained unchanged at 7.1 per cent last month as employers pulled back after a wild month of hiring in May.

The agency says the economy shed a mere 400 jobs in June, a statistically insignificant number, but better than the 12,500 jobs economists had expected would be lost in the hangover from the hiring binge seen in May, when 95,000 new jobs were added.

In commodities, the August crude contract on the New York Mercantile Exchange was ahead 87 cents at US$102.11 a barrel.

August gold bullion dropped $28.40 to US$1,223.50 an ounce on the Nymex.

Also, Loblaw Companies Limited (TSX:L) begins listing its new real estate investment trust today on the TSX. Choice Properties REIT (TSX:CHP.UN) will hold 415 retail properties, one office complex and nine warehouse properties totalling 35.3 million square feet of gross leasable area.

In Asia, markets were catching up with the gains in Europe the day before. The rally was trigged by the European Central Bank President Mario Draghi’s statement that interest rates will remain low “for an extended period of time.”

The ECB statement was echoed by the Bank of England and followed indications that the U.S. economy is growing — but probably not fast enough for the U.S. Federal Reserve to rush into tapering off its stimulus program. Markets had been spooked in recent weeks at the prospect of such stimulus ending.

In early European trading, Britain’s FTSE 100 was up 0.6 per cent to 6,458.85 after jumping three per cent the day before. Germany’s DAX, however, edged down 0.2 per cent to 7,979.19 while France’s CAC-40 slipped 0.2 per cent to 3,799.47.

Tokyo’s Nikkei 225 closed up 2.1 per cent to 14,309.97 and Hong Kong’s Hang Seng added 1.9 per cent to 20,854.67

Elsewhere in Asia, Taipei’s TAIEX jumped 1.4 per cent to 8,001.82 while Sydney’s S&P/ASX 200 edged up one per cent to 4,841.70 and China’s Shanghai Composite posted a small gain of 0.1 per cent to 2,007.29.