CANADA STOCKS-TSX falls after weak Canadian, U.S. jobs data

Fri Aug 6, 2010 11:32am EDT
 
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*TSX down 41.25 points, or 0.35 percent, at 11,733.52

*Financials, energy sector weaken after jobs data (Updates to midmorning, adds quote)

By Jennifer Kwan

TORONTO, Aug 6 (Reuters) - Toronto's main stock index was lower on Friday morning after weaker than expected Canadian and U.S. jobs data spurred concern about the strength of the economic recovery.

Financial shares, down 1.3 percent, led the TSX lower. Royal Bank of Canada RY.TO declined 1.3 percent to C$51.97, and Toronto-Dominion Bank TD.TO fell 1.2 percent to C$72.31.

Canada's economy unexpectedly shed 9,300 jobs in July, the first month this year it has failed to create employment, suggesting the country's recovery from recession is starting to slow. Analysts had expected a rise of 15,000 jobs. [ID:nN06197942]

"It's not the end of the world because we've had a real streak of employment gains, particularly last month. Not totally unexpected, but I think the market had expected a little more," said Irwin Michael, portfolio manager at ABC Funds. The July report follows a strong gain of 93,200 jobs in June.

In the United States stocks fell sharply on Friday after data showed a steeper-than-expected drop of 131,000 in July nonfarm payrolls. Analysts polled by Reuters had forecast a 65,000 drop. [.N] [ID:nN05598486]

"The market is very thin and the market is merciless when it comes to not beating the expectations," Michael said.   Continued...