CANADA STOCKS-TSX lower as weak golds overcome upbeat data

Fri Dec 4, 2009 10:59am EST
 
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 * TSX down 43.77 points, or 0.38 percent, at 11,592.78,
 * Canadian, U.S. job reports add to economic optimism
 * Gold price drop hits TSX materials group
 (Adds details, quote)
 By Jennifer Kwan
 TORONTO, Dec 4 (Reuters) - Canada's main stock index was
lower on Friday morning as weak gold prices hit the index's
weighty materials sector, overcoming optimism fueled by strong
Canadian and U.S. employment reports.
 Barrick Gold (ABX.TO: Quote) was down 8.6 percent at C$45.16,
while Goldcorp (G.TO: Quote), fell 5.2 percent to C$45.00. The two big
producers topped the list of influential movers on the downside
as the gold price retreated.
 On the upside, energy producer EnCana (ECA.TO: Quote) was up 2.1
percent at C$29.40, was a top influential gainer as oil rose
above $77 a barrel following the upbeat U.S. jobs data. [O/R]
 U.S. employers cut 11,000 jobs in November -- far fewer
than expected -- while the unemployment rate fell to 10 percent
from a 26-1/2-year high of 10.2 percent in October.
[ID:nN03103070].
 Earlier, Statistics Canada reported the domestic economy
created a net 79,000 jobs in November, well above analyst
expectations of a 15,000 gain. The unemployment rate eased to
8.5 percent from 8.6 percent in October. Analysts had expected
a rise to 8.7 percent. [ID:nN04141170]
 "Very strong employment data on both sides of the border is
pushing global equities (higher)," said Francis Campeau, a
broker at MF Global Canada, in Montreal.
 "(Weak gold) is weighing heavily on the Canadian side of
the equation," Campeau added.
 The price of gold fell from record highs to below $1,190 as
the U.S. dollar rose on the robust U.S. jobs data and dented
gold as a currency hedge [GOL/].
 At 10:48 a.m. (1548 GMT), the S&P/TSX composite index
.GSPTSE was down 43.77 points, or 0.38 percent, at 11,592.78,
with eight of its 10 main groups higher. The materials group
was down 3.5 percent.
 Royal Bank of Canada (RY.TO: Quote) shares slipped 2.8 percent to
C$55.88. Canada's biggest bank reported on Friday its quarterly
profit rose 10 percent as strong domestic banking offset losses
in its big U.S. operations, but the results were not as
impressive as rivals have reported. [ID:nN04143770]
 "Nothing too disappointing, but nothing great either. So
far we're seeing a bit of profit-taking," said Campeau.
 ($1=$1.05 Canadian)
 (Reporting by Jennifer Kwan; editing by Rob Wilson)
 ((jennifer.kwan@thomsonreuters.com; +1 416 941 8178; Reuters
Messaging: jennifer.kwan.reuters.net@reuters.com))
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FOR CANADIAN MARKETS NEWS, CLICK ON CODES IN BRACKETS:
TSX market report..........[.TO]
Canadian dollar and bonds report....[CAD/][CA/]
Top News: Canada ......[TOP/CAN]
Today in Canada.......[CA/DIARY]
Canadian company news .. [E-CAN]
Reuters global stocks poll (Canada)...EQUITYPOLL5 [EPOLL/CA]
FOR CANADIAN MARKETS DATA, CLICK ON CODES IN BRACKETS:
Canadian Equities speed guide.......<CA/EQUITY>
S&P/TSX Composite index ...............GSPTSE
S&P/TSE Venture composite index ......
TSX most active..........AV.TO
Venture Exchange most active.............AV.V
Top TSX pct gainers......PG.TO
Top TSX pct losers.......PL.TO
S&P/TSX 60 index .......
52 week highs:
 TSX...............t.YH.TO  Venture..............t.YH.V
52 week lows:
 TSX...............t.YL.TO  Venture..............t.YL.V
Canadian dollar quote......CAD=CAD=D3=CAD
FOR MAIN GLOBAL MARKET DATA AND MARKET REPORTS:
  FTSE EUROTOP 300 ......FTEU3  EUROPEAN REPORT .......[.EU]
  Nikkei 225..............N225  Tokyo report............[.T]
  FTSE 100................FTSE  London report...........[.L]
  Xetra DAX..............GDAXI  Frankfurt market stories[.F]
  CAC-40...FCHI  Paris market stories...[.PA]
  World Indices.......<0#.INDEX>
  Foreign exchange........[FRX/]
  Oil.......[O/R]
  US Treasuries............[US/]
  International bonds.....[EUB/]
  Gold.........[GOL/X] or [GOL/]
  CRB index of commodity futures.........[CRB/]