TSX rallies as U.S. jobs data lifts commodities
By Jon Cook
TORONTO (Reuters) - Canada's main stock index had its largest one-day gain in a month on Friday as financial and resource shares were boosted after the U.S. economy added more jobs than expected in July, easing concerns about the health of the world's largest economy.
The data showed U.S. employers hired 163,000 workers, the most in five months and above expectations calling for an increase of 100,000 jobs.
The strong U.S. number came at the same time as corporate earnings "continued the pattern of being pretty decent," said Bob Gorman chief portfolio strategist at TD Waterhouse.
"This is one of the few days in which you had both oars in the water," added Gorman.
The news boosted commodity markets as the U.S. dollar fell, making dollar-denominated commodities cheaper for holders of other currencies. The 19-commodity Thomson Reuters-Jefferies CRB index .CRB had its biggest gain in a month.
Most of Canada's 10 main sectors finished higher. Leading the way was the powerful energy complex, which rose 2.5 percent as U.S. oil prices jumped 5 percent. <O/R>
Suncor Energy (SU.TO: Quote), Canada's largest oil producer, rose 3.6 percent to C$31.63, while Canadian Natural Resources (CNQ.TO: Quote) jumped 4.4 percent to C$27.95 and Cenovus Energy (CVE.TO: Quote) was up 2.9 percent to C$31.39.
Financials were also stronger, rising 1.2 percent on the prospect Canada's largest trading partner was stabilizing and possibly shaking off its doldrums. Continued...